The Income Tax Department has sent intimation notices to over 22,000 taxpayers, including salaried and high net-worth individuals, as deductions do not match the information furnished in their Form 16 or Annual Information Statement (AIS) or the data available with the Income Tax Department.
Here are some key points to be considered
- Notices Sent: The Income Tax Department has sent out over 22,000 intimation notices to taxpayers, including both salaried individuals and high-net-worth individuals. These notices were sent out in the last 15 days.
- Salaried Taxpayers: Around 12,000 notices were sent to salaried taxpayers where differences between the tax deductions claimed in their returns and the department's data exceeded ₹50,000.
- Hindu Undivided Family (HUF): Over 8,000 notices were sent to taxpayers who had filed returns under Hindu Undivided Family (HUF), where the income disparity between the return filed and the data with the department was over ₹50 lakh.
- High-Net-Worth Individuals: Approximately 900 high-net-worth individual taxpayers received notices where a disparity of Rs 5 crore was found.
- Discrepancies Detected: The core data analytics process detected discrepancies and unusual patterns in the tax returns of approximately 200,000 taxpayers. These discrepancies involve inconsistencies between income declarations, expenditures, or bank account information provided by taxpayers and the data gathered by the department through transactions linked to their bank or UPI accounts.
- Response to Notices: Taxpayers who receive these intimation notices have the option to either pay the due tax with an updated return along with interest or provide a detailed explanation for the discrepancies.
- Missed Income Reporting: Some taxpayers missed reporting capital gains and dividend income, and they omitted details regarding their additional bank accounts.
- Digitization and Tracking: The digitization of the economy has made it easier for tax authorities to track potential tax evasion. The department officials mentioned that better syncing of account aggregators will further enhance their ability to detect evasion.
It's important for taxpayers to respond to these notices promptly and address any discrepancies to ensure compliance with tax regulations. Failure to respond may lead to the issuance of demand notices by the Income Tax Department.
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