New Delhi: The Income Tax Department (ITD) has issued an advisory communication to select taxpayers after noting discrepancies between disclosures made in income tax returns (ITRs) and transaction data reported by third-party reporting entities, according to an official communication.
The department clarified that the outreach is not a notice or enforcement action, but an informational advisory aimed at making taxpayers aware of transaction details already available with the tax authorities. Such communications have been sent only in cases where there is an apparent and significant gap between the information reported in the ITR and data reflected in the Annual Information Statement (AIS).
The objective, the ITD said, is to provide taxpayers an opportunity for voluntary compliance by reviewing their AIS, submitting feedback on the Compliance Portal, and taking corrective action where required. This may include revising returns already filed or filing a belated return if the original return has not been filed.
The department reminded taxpayers that the deadline for revising or filing belated returns for Assessment Year 2025–26 is December 31, 2025. Taxpayers have been advised to respond promptly through the Compliance Portal if discrepancies exist, and to ignore the communication if their filings are accurate.
Tax officials said the move is part of a broader push towards non-intrusive, data-driven tax administration, encouraging self-correction and reducing the need for formal scrut iny.