The Income Tax Department has clarified that recent emails and SMS alerts sent to taxpayers about mismatches between income tax returns (ITR) and financial transactions are only advisory.
These messages are not for penalty or scrutiny.
Many taxpayers received alerts regarding high-value transactions linked to their PAN that were either missing in their ITRs or seemed disproportionate to their declared income.
The department has now explained the purpose of these communications.
What the Department Says
According to the Income Tax Department, these alerts are meant to inform taxpayers about data already available with them, sourced from banks, mutual funds, registrars, and other reporting entities.
The department stated:
“Such communication is to facilitate taxpayers and make them aware of the information available with the ITD regarding transactions reported by Reporting Entities during the year.”
Emails are sent only when there is a significant gap between what a taxpayer has disclosed in their ITR and what third-party data shows.
Option to Revise or File Belated Returns
The main aim of these messages is to give taxpayers a chance to voluntarily correct errors.
You can:
Revise your ITR
File a belated return if you missed the deadline
Ignore the message if your filing is already accurate
The department reminded taxpayers that December 31, 2025, is the last date to revise or file a belated return for Assessment Year 2025–26.
Why You Are Receiving These Emails
These emails often flag high-value transactions such as bank deposits, investments, or donations that don’t match the income declared in your return.
The alerts are part of the Income Tax Department’s data-led compliance drive, which uses information from:
Annual Information Statement (AIS)
Statement of Financial Transactions (SFT)
TDS and TCS filings
This approach helps taxpayers correct errors proactively and ensures smoother compliance without immediate penalties.
