The IT department has given a chance to correct the mistake; if you have also received a notice, do this immediately..

The Income Tax Department has issued a major statement regarding the notices and emails recently sent to taxpayers. The department has clarified that the communications sent due to discrepancies found in ITRs and financial transactions are neither intended to impose penalties nor initiate scrutiny, but are purely advisory in nature.

In the past few days, a large number of taxpayers have complained about receiving emails and SMS messages mentioning high-value transactions linked to their PAN. These transactions were either not reflected in their ITRs or appeared significantly larger than their declared income.

Notices were sent to these individuals by the IT Department
The department stated that the information provided in these notices is entirely based on data already available to it. This data is obtained from banks, mutual funds, registrars, and other reporting entities. The department said that the purpose of these notices is simply to make taxpayers aware that complete details of the transactions are available in the department's records.

The CBDT said that these notices have been sent only in cases where significant discrepancies were found between the disclosures made in the ITR and the third-party data. In such cases, the department wants taxpayers to review their returns and correct any errors. Taxpayers can check their AIS (Annual Information Statement) and amend their returns if there are any mistakes. They can also file a late ITR. However, if they believe their filing is completely correct, they can ignore the notice.

Errors can be corrected until December 31, 2025
The last date for filing revised or late ITRs for Assessment Year 2025-26 is December 31, 2025. Thousands of taxpayers received such emails last week. These included the names of individuals whose high-value transactions, such as bank deposits, investments, and donations, were not reported in their income tax returns or were significantly larger than their declared income. This entire initiative is part of the department's data-driven monitoring drive, which utilizes information received from AIS, SFT, TDS, and TCS. The department wants taxpayers to rectify any discrepancies promptly to avoid further action or complications.

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