In recent weeks, many taxpayers have received SMS or email communications from the Income Tax Department. These messages have caused some confusion, but it’s important to note that they are not formal tax notices.
Instead, these are advisory communications sent when there is a mismatch between the information available with the ITD and what a taxpayer has reported in their Income Tax Return.
Why is the ITD sending these messages?
The Income Tax Department now uses data received from multiple reporting sources to cross-verify returns. This includes information shared by banks, employers, mutual funds, stockbrokers, and even foreign institutions.
When the data reported by these entities does not align with the figures in your ITR, the department sends an advisory message to flag the issue. These communications are intended to provide taxpayers with an opportunity to review and correct errors voluntarily before stricter compliance actions are initiated.
Common reasons for receiving this communication
Such communications are triggered due to:
- Claiming excess deductions that don’t match employer declarations
- Non-disclosure of foreign income or assets, such as foreign investments or bank accounts
- Mismatch between Form 16 and the ITR, especially in salary or TDS details
- Income reflected in AIS or TIS, such as interest, dividends, or capital gains, but missed in the return.
What should you do next?
If you’ve received an SMS or email from the ITD, you should review your filings and take corrective action if required.
Start by reviewing your Annual Information Statement and comparing it with the ITR you’ve filed. This will help you identify any discrepancies or missing income.
If you find errors or omitted details, you should file a revised return to correct them. A revised return replaces your original return and allows you to update the information.
If you haven’t filed your ITR yet for the relevant financial year, you’ll need to file a belated return. Also, keep in mind that a late fee may apply.
The deadline to file both revised and belated returns is 31 December 2025. File with us to complete the process smoothly and on time.