10 April 2024
This scheme has only predefined replies but there is no chance for us to explain where we had shown that particular income in ITR. Eventhough we have shown the income in ITR still there is a mismatch. How to response to it?
09 July 2024
When responding to a scheme or automated process that raises concerns about income mismatches despite correctly reporting them in your Income Tax Return (ITR), follow these steps:
1. **Review Your ITR:** - Double-check your ITR for the relevant assessment year where you reported the income in question. Ensure that the income is correctly categorized and reported according to the income heads specified.
2. **Gather Documentation:** - Collect supporting documents that substantiate the reported income. This could include salary slips, bank statements showing deposits, invoices for services rendered, or any other relevant documents.
3. **Understand the Discrepancy:** - Carefully review the notice or communication that highlights the income mismatch. Understand the specific nature of the discrepancy identified.
4. **Prepare a Response:** - Craft a clear and concise response that addresses the following: - **Explanation of Reporting:** Detail how and where in the ITR the income was reported. Mention the specific schedule and line items where it was disclosed. - **Supporting Documents:** Attach copies of relevant documents that support your reported income. Highlight any discrepancies in the assessment and how they may have arisen. - **Request for Clarification:** If the notice is unclear or you require additional information to respond accurately, politely request clarification on the specific issue.
5. **Submit Response Timely:** - Ensure that your response is submitted within the stipulated timeframe mentioned in the notice. Timely responses help in avoiding penalties or further complications.
**Follow Up:** - After submitting your response, follow up with the tax authorities if necessary to ensure that your explanation is received and understood.
**Seek Professional Advice:** - If the matter is complex or you are unsure about how to proceed, consider seeking advice from a tax professional or a chartered accountant who can provide guidance specific to your situation.
By methodically addressing the notice with accurate information and supporting documentation, you enhance your chances of resolving the income mismatch issue satisfactorily.
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