Why mismatch in Income tax return ?

By | April 25, 2016
(Last Updated On: April 25, 2016)

Mismatch in Income tax return

Normally Income tax department issues notices if there is mismatch in the information received from the third parties (Banks etc ) and the Income tax return filed by the Taxpayer.

Traditionally, when Income Tax Department (ITD) found mismatch in information shown in the Income Tax Return with the information submitted from third parties in the form of Annual Information Return (AIR), TDS Statement etc., the cases were selected for scrutiny. The list of such mismatch related issues is provided as follow :-

income tax return form

  1. Transfer of property reported in AIR but capital gains is not declared in Return of Income.

Taxpayer has filed the Return of Income in ITR 1/4S which does not contain the details of any transfer of property by the taxpayer. While the Income Tax Department has received the details about the transfer of the property by the taxpayer from the Sub Registrar of the properties by way of AIR return.

2. Value of property transferred as reported in AIR is higher than the value of property transferred as reported in Return of Income 

The value of property transferred during the year as reported in the AIR return filed by the Sub Registrar office, is higher than the Full value of consideration adopted as per section 50C for the purpose of Capital Gains as declared in the Capital gains Schedule of Return of Income.

3. Payment of compensation on acquisition of immovable property as shown in TDS return filed by acquirer is more than sale consideration reported in the Return of Income

The value of property transferred during the year as reported in TDS return filed by the Government under section 194LA, is higher than the full value of consideration received/receivable as declared in the Capital gains Schedule of Return of Income.

4.Payment of compensation on acquisition of immovable property is shown in TDS return filed by Government but capital gains is not declared in Return of Income.

Taxpayer has filed the Return of Income in ITR 1/4S which does not contain the details of any transfer of property by the taxpayer. While the Income Tax Department has received the details about the transfer of the property by the taxpayer from the TDS return under section 194LA filed by the Government.

5. Amount paid/credited as per 26 AS(194C and/or 194J) but no income from business/profession declared in Return of Income

Taxpayer has filed the Return of Income in ITR 1/2/3 which does not contain the details of any income from business/profession, while the Income Tax Department has received the details about amount paid/credited u/s 194C and/or 194J to the taxpayer during the year as reported in the TDS return filed by the deductor(s)

6. Amount paid/credited as per Form 26 AS (Section 194C and 194J) is more than the gross turnover or gross receipts shown in Return of Income

Amount paid/credited as per Form 26 AS (Section 194C and 194J) is more than the gross turnover or gross receipts shown in Return of Income filed in ITR 4S

7.Amount paid/credited reported in Form 26 AS (Section 194I) is significantly more as compared to the income from house property as shown in Return of Income

Amount paid/credited reported in Form 26 AS (Section 194I) is significantly more as compared to the income from house property as shown in Return of Income filed in ITR 1/4S

8.Amount paid/credited in Form 26 AS (Section 194I) is significantly more as compared to the rent/annual lettable value as shown in Return of Income

Amount paid/credited reported in Form 26 AS (Section 194I) is significantly more as compared to the income from house property as shown in Return of Income

9.Amount paid/credited as interest and winnings from lottery, crossword puzzle, races etc. in Form 26 AS is more than the Income from other sources shown in Return of Income

Amount paid/credited as interest and winnings from lottery, crossword puzzle, races etc. in Form 26 AS is more than the Income from other sources shown in Return of Income filed in ITR 1/4S

10.Amount paid/credited as interest in Form 26 AS is more than the interest income shown in Return of Income

Gross Interest shown in Return of Income is less than Interest paid/payable during the year reported in the TDS return filed by the deductor(s).

11.Turnover from services reported in Service Tax Return but no income from business/profession declared in Return of Income

Assessee has declared turnover from services in its service tax return(s) submitted to the Service Tax Department while the Income Tax Return is filed in ITR 1/2/3 which does not contain the details of any income from business/profession.

12. Higher turnover reported in Service Tax Return as compared to gross turnover or gross receipts reported in Return of Income

Amount of turnover from services during the year, declared by the assessee in the service tax return submitted to the Service Tax Department is higher than the amount of turnover reported in ITR 4S.

Read Also :How to submit response to mismatch notice from Taxman ?

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