Friday, March 22, 2024

Responding to Income Tax Department Notices & Filing Updated Returns

"In the intricate dance with the tax authorities, precision in steps ensures grace under scrutiny."


Receiving a notice from the Income Tax Department often sets hearts racing and minds reeling with apprehension. However, just like a well-choreographed dance, responding to these notices can be navigated with poise and precision. This comprehensive guide aims to be your trusted partner, leading you through the intricate steps of addressing tax notices with confidence and clarity.

Decoding the Notice:

Your recent notice is part of the "Information Mismatch Campaign" for the Financial Year 2021-22. This initiative underscores the department's commitment to fostering tax compliance by identifying and rectifying discrepancies between the income details submitted in your return and the data available with the department. It's a spotlight on transparency and accountability in tax matters.

Strategizing Your Response:

Step 1: Analyze the Mismatch

  • Access the Portal: Log in to the e-Filing portal and navigate to the 'Compliance Portal' to access specifics about the mismatched information.
  • Understanding the Discrepancy: Dive deep into the details provided to discern the nature of the mismatch, whether it involves underreported income, misreported deductions, or flawed tax credit claims.

Step 2: Crafting Your Response

  • Clarify or Correct: Evaluate the information and decide whether to acknowledge and rectify the discrepancy or provide a robust explanation defending the accuracy of your original return.
  • Action Steps: If corrections are warranted, proceed to file an updated return. If disputing the discrepancy, compile and submit supporting documents or explanations through the portal to substantiate your claims.

Filing an Updated Return: A Closer Look

Under Section 139(8A) of the Income Tax Act, taxpayers have the provision to file an updated return within 24 months from the end of the assessment year in question. Here's a closer look at the process:

  1. Eligibility Check: Ensure that your situation meets the criteria for filing an updated return under the specified conditions.
  2. Prepare the Updated Return: Carefully review and correct errors, include any omitted income, and ensure the accuracy of all information provided.
  3. Calculate Additional Tax: If the updated return results in additional tax liability, calculate and remit the required amount, including any interest or penalties, before submission.
  4. Verification: After submitting your updated return, complete the process by verifying it through the available methods provided by the e-Filing portal.

Key Points to Remember:

  • Accuracy is Paramount: Ensure that all information provided in the updated return is accurate and supported by relevant documentation.
  • Updated Return Limitations: Be aware of the limitations surrounding filing an updated return, especially concerning the treatment of losses and refunds.
  • Professional Guidance: For complex matters or if you require assistance, consider seeking advice from tax experts who can provide valuable insights and assistance.


It's crucial to note that the deadline to file an updated return for FY 2020-21 (AY 2021-22) is 31st March 2024. Time is of the essence, and adhering to this deadline ensures that you have ample opportunity to rectify discrepancies and fulfill your tax obligations promptly.


Receiving a tax notice need not be a cause for alarm; instead, consider it an invitation to dance through compliance with finesse and clarity. By following the structured steps outlined in this guide, you not only address the notice effectively but also demonstrate your commitment to transparency and responsibility in tax matters. So, embrace the opportunity to harmonize your tax affairs, moving forward with confidence and precision in your interactions with the tax authorities.