As per a report published in the Economic Times, the Income Tax (I-T) department has sent intimation notices to around 22,000 taxpayers, encompassing salaried individuals, high-net-worth individuals, trusts, and Hindu Undivided Families (HUFs).
These notices address discrepancies between the deductions claimed in their tax returns and the information presented in their Form 16 or Annual Information Statement (AIS), or the data accessible to the Income Tax Department.
These notification letters are related to tax returns submitted for the assessment year (AY) 2023-24, and they have all been sent out in the last 15 days. Approximately 12,000 of these notifications were directed to salaried taxpayers, in cases where the difference between the tax deductions they reported in their returns and the records held by the department exceeded ₹50,000.
Furthermore, intimation letters were dispatched to approximately 8,000 taxpayers who filed tax returns as Hindu Undivided Families (HUFs), in cases where the income variation between their returns and the information maintained by the IT department exceeded ₹50 lakh. For 900 high-net-worth individuals (HNIs), this disparity amounted to ₹5 crore or more, and for 1,200 trusts and partnership firms, it exceeded ₹10 crore. These notifications aim to resolve and rectify discrepancies in the tax declarations of these taxpayers.
In a more extensive perspective, the primary data analysis has detected irregularities and disparities in the tax filings of approximately 200,000 taxpayers. These disparities primarily revolve around discrepancies in the income declarations, expenses, or bank account information provided in their income tax returns compared to the data gathered by the IT department, which is derived from transactions associated with their bank or UPI accounts. This data analysis is an integral component of the department's initiatives to uphold tax compliance and precision in financial reporting.
What are the choices available?
Individuals who have received notifications regarding inconsistencies in their tax returns have several avenues for addressing the matter, such as settling the outstanding tax, including any applicable interest, by submitting a revised and rectified tax return.