Financial Literacy News: As the deadline for updating Income Tax Returns (ITRs) for the fiscal year 2020-21 draws near, many individuals have recently received emails from the Income Tax Department regarding significant transactions flagged in their Annual Information Statement (AIS). Here's what you need to know about these communications and how to address them:
The Income Tax Department said, "The Income Tax Department receives information of specified financial transactions of taxpayers from various sources. This information is reflected in the Annual Information Statement (AIS) module and is available to the persons/entities for viewing. The value of ‘Significant Transactions in the AIS has been used for carrying out this analysis." Read here to know what are these specified financial transactions .
The Income-tax department said on X said that they have "identified certain inconsistencies in the data of the securities market (SFT-17) provided by one of the Reporting Entities." It appears that due to this the Income-tax department s Compliance Portal showed highly inflated transaction values for some taxpayers in their annual information statement (AIS). Some taxpayers say that their sale consideration of Rs 4 lakh got inflated to Rs 17 crore. There are many taxpayers who complained on X about the Compliance Portal showing inflated transaction values in their AIS.
The Income Tax Department has initiated an e-campaign to notify taxpayers whose taxes paid during the current fiscal year do not match their financial transactions. Through emails and SMSs marked as "Advance Tax e-Campaign-Significant Transactions for AY 2024-25," taxpayers are urged to accurately calculate and deposit their advance tax by March 15.