• Source:JND

The tax filing season officially commenced last month when the Income Tax Department enabled Excel utility forms for online income tax returns (ITR) filing on its official portal. Meanwhile, as many companies have issued or begun issuing Form 16, salaried persons have also initiated the return filing process. However, they should be cautious and follow a strategic approach to verify details, as the modern income tax return is built heavily on third-party reported data. 

Filing without verifying details reflects on the income tax portal increases the risk of mismatches between your filed return and the department's records. Such mistakes can lead to notices and rework, or even penalties for under-reporting. 

Experts advise prioritising data accuracy over speed, suggesting the latter half of June as a more reliable time to start the reconciliation process.

Details To Verify Before Filing

According to Kinjal Bhuta, Treasurer at the Bombay Chartered Accountants’ Society (BCAS), taxpayers should reconcile the following details from their personal records against the information reflected in Form 26AS, the Annual Information Statement (AIS), and the Taxpayer Information Summary (TIS).

  • Salary Income and TDS: Ensure these match your records and the figures reflected on the portal.

  • Tax Credits: Verify all tax credits appearing in the official statements.

  • Interest Income: Check that interest earned from bank deposits is captured correctly.

  • Dividends and Capital Gains: Confirm these figures are accurately reported.

  • High-Value Transactions: Ensure any significant financial transactions reported by institutions are reflected correctly.

  • Reporting Discrepancies: If you encounter any incorrect or duplicate information in the AIS or TIS, utilise the feedback functionality available on the income tax portal to report the issue.

“Before filing the Income Tax Return (ITR), salaried taxpayers should thoroughly verify the information reflected on the income tax portal rather than relying solely on Form 16. The first step is to reconcile salary income, TDS, and other tax credits appearing in Form 26AS, Annual Information Statement (AIS), and Taxpayer Information Summary (TIS) with personal records. Where taxpayers find any incorrect or duplicate information in the AIS/TIS, they should use the feedback functionality available on the income tax portal to report the discrepancy,” said Kinjal Bhuta, Treasurer at BCAS (Bombay Chartered Accountants’ Society)

Additionally, Taxpayers should also review whether interest income from bank deposits, dividends, capital gains, high-value transactions, and other financial information reported by various institutions has been correctly captured.

“Any mismatch between the return and the data available with the tax department can increase the likelihood of receiving notices seeking clarification,” Bhuta noted. 


Also In News