Income Tax Dept Clarifies Advisory Emails on ITR Mismatches, Urges Voluntary Correction Before Dec 31, 2025

The Income Tax Department (ITD) has clarified that the recent SMS and email communications sent to certain taxpayers regarding their financial transactions are purely advisory and aimed at promoting voluntary compliance, not initiating penal or enforcement action.

In a detailed post on X (formerly Twitter), the department said these system-generated messages were issued only in specific cases where there appears to be a significant gap between disclosures made in income tax returns (ITRs) and information available with the tax authorities from reporting entities such as banks and financial institutions. The outreach, it said, is limited and data-driven.

“These communications are to facilitate taxpayers and make them aware of the information available with the ITD regarding transactions reported by the reporting entities,” the department stated, adding that the intent is to help taxpayers review and, if required, correct their filings.

Also Read: Income Tax Dept Warns Seniors: Fake Emails, SMS Steal PAN, OTPs – Verify Now! | Republic World

The ITD said the objective is to give taxpayers an opportunity for voluntary correction by reviewing their Annual Information Statement (AIS) and submitting feedback through the Compliance Portal. Where discrepancies are found, taxpayers may revise an already filed return or file a belated return if no return has been filed so far. Importantly, the department reminded taxpayers that the last date for revising or filing a belated return for Assessment Year (AY) 2025–26 is December 31, 2025. Those whose filings are accurate and aligned with available data may ignore the communication.

The clarification comes amid heightened scrutiny of high-value and red-flagged refund claims, which has delayed refunds in some cases. CBDT Chairman Ravi Agrawal had earlier stated that the review followed instances of wrongful deductions and incorrect claims, while legitimate, low-value refunds continued to be issued and were expected to be released by December.

Separately, the department has also rolled out a targeted “nudge” campaign to improve disclosure of foreign assets and income for AY 2025–26, based on information received under the Automatic Exchange of Information (AEOI) framework. In the first phase, around 25,000 high-risk cases were identified, with taxpayers being advised to review their AIS and revise returns to avoid penal consequences under the Income-tax Act, 1961 and the Black Money Act, 2015.

The ITD reiterated that the advisory emails and messages are part of its broader effort to encourage voluntary compliance and reduce future disputes, not punitive notices.