Onus on taxpayers to identify errors

Taxpayers must cross-check the details in their Annual Information Statement (AIS), Form 26AS and Form 16 and report any discrepancy before filing their Income Tax Return (ITR). Being proactive with discrepancies ensures accurate filing and avoids unnecessary notices or adjustments by the department.

How to rectify discrepancies

Identify the mismatch: The taxpayer needs to check whether the error is due to incorrect reporting by a third party (like a bank or employer), duplication of entries, or the statements are yet to be updated.

Raise feedback on AIS portal: In case of discrepancies, the taxpayer should login to their AIS portal and provide feedback, specifying the nature of the mismatch—whether the information is incorrect, not related, or partially correct.

Reach out to the source: It is advisable to reach out to the deductor (such as your employer, bank, etc.), since the feedback provided on the AIS is routed to the respective source for verification. Proactively informing them can help ensure timely rectification of the error at their end.

Keep documentation ready: Maintain supporting documents like salary slips, bank statements, Form 16, interest certificates, and communication with the deductor to substantiate your claims.

Wait for correction (if time permits): If the deductor agrees to correct the entry and you are within the due date, wait for the correction to reflect before filing your ITR.

File return with correct information: If the discrepancy remains unresolved before the due date, file your return with the correct details as per your records and documentation, and be prepared to respond to a possible notice.

Neeraj Agarwala, partner, Nangia & Company, suggests saving acknowledgment of the feedback submitted on the AIS portal or communication with the deductor. “It may help in case of a later inquiry or scrutiny,” he adds.

Publication – Financial Express

By Neeraj Agarwala