Discrepancy meaning in ITR: Reasons tax department may find discrepancies in your ITR

Mismatch in TDS: At the time of filing the ITR, the Income Tax department matches it with the data mentioned in Form 26AS and Form 16. And if there is a mismatch, the IT department will send you a notice to either correct it in the revised ITR or need clarification in response.

Discrepancy in Income Tax Return: The income tax authorities may send you a notice for non-disclosure or under-disclosure of income if they suspect that you have not disclosed all your income from various sources. To avoid this, you should collect all your financial documents and evidence of all your income sources, such as salary slips, bank statements, bills, etc., and report them accurately when filing your income tax return.

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If an error is found in your filed ITR, the income tax department can send you an income tax notice.

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This notice is sent to an individual after the income tax department processes the ITR. The notice informs an individual whether his ITR calculations match with that of the income tax department. If there is a mismatch, then this intimation notice will inform whether there is a refund due or additional taxes are payable. An individual will get this notice, even if there is no mismatch or error in the ITR. If the intimation notice is issued due to a refund or if there is no mismatch between you and the tax department’s calculation, then you do not need to respond. However, if there is a tax demand, the taxpayer is expected to respond within 30 days from the date of issue of intimation notice either agreeing/disagreeing with the adjustment proposed.

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Notice under section 139(9) of the Income Tax Act, 1961 is sent when there are some errors in the filed ITR. The tax department will send this tax notice requiring the assessee to correct the errors by filing a revised ITR. Income tax notice under section 139(9) may be issued within nine months from the end of the financial year in which the return is filed. Usually, the tax department allows individuals a 15 days’ period to respond

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To respond to an income tax notice under Section 143(1), follow these steps, as per the HDFC Life website:
Step 1. Understand the nature of adjustments made and the reasons mentioned in the notice.
Step 2. Prepare a response providing appropriate explanations, supporting documents, or corrections.
Step 3. Submit your response within the specified time, either online through the income tax e-filing portal or by physically visiting a designated office.
Step 4. Maintain a copy of your response and proof of submission for future reference

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