Errors in AIS financial transactions? What to do if you get an e-verification notice from tax department

Taxpayers can raise objections if they spot errors in the financial transactions in their Annual Information Statement (AIS). Once you raise the issue the tax department will check with the source. If the mismatch continues, a notice under the e-verification scheme can be issued.

According to a tax department advertisement dated March 14, 2023, “Check the financial transaction available in AIS tab of your income tax account at Income tax website. If you disagree, raise an objection. We will check with the Source. If the mismatch continue, notice under the e-verification scheme may be issued. In such cases, return of income can be updated u/s139(8A) of the IT Act, 1961, subject to eligibility."

Also read: Tax department takes up 68,000 cases up for e-verification: All you need to know about e-verification scheme

Where can a taxpayer see financial transactions reported to Income Tax Department Sources/Reporting Entities?
The Income Tax Department collects financial transactions such as your TDS/TCS revenues, immovable property acquisition or sale, bank deposits, investment in shares/mutual funds, time deposits, and so on. You can view all of these transactions in the AIS portal of your income tax account beginning with FY 2020-21. The steps are as follows:
Step 1: Login to e-filing portal by using the URL
https://eportal.incometax.gov.in/
Step 2: Click the tab “Services”
Step 3: Select “Annual Information Statement (AIS)” in the menu under the tab
“Services”, you will be taken to the AIS portal
Step 4: Select the relevant Financial Year and click on “Annual
Information Statement” to view the financial transactions.

How to find a transaction which is incorrectly recorded or which does not pertain to me?
As per the e-verification scheme FAQs, As previously said, once you are viewing information under AIS, click on a particular informational item. Once the information details are displayed, a feedback button on the right side allows the taxpayer to submit feedback from the menu selections available.

What happens after I raise my objection to any transaction reported in AIS?
In the next 3-4 months, the Income Tax Department will begin contacting the Source/Reporting Entity that reported the information/transaction to ensure the accuracy of the data.

According to the e-verification FAQs, “Once this process is rolled out then: If the Source/Reporting Entity agrees that there has been a mistake, the data will be corrected in due course of time after the Source/Reporting Entity files its corrected statement. This process is done through an automated Information Technology driven procedure. If the Source/Reporting Entity stands by the data and does not support your objection, further explanation/evidence will be called from you under the eVerification Scheme which is explained in the following questions.”

What should I do when I receive notice for e-Verification?
The notice issued under Section 133(6) of the Income Tax Act will be visible to you in the Compliance Portal (accessed via https://eportal.incometax.gov.in). Typically, you will also be notified through SMS on your registered mobile phone and via email on your registered email address. The following are the steps required in accessing the notice under Section 133(6) and filing the answer electronically, according to the FAQs.

Step 1: Taxpayer will Login to the e-filing portal by using the URL https://eportal.incometax.gov.in/
Step 2:Go to “Pending Actions” tab, click on “Compliance Portal” and select “eVerification”
Step 3: Click on applicable Financial Year
Step 4: Click on the 'DIN' to download the notice.
Step 5: Click on 'Submit' link to provide the response.
Step 6: Enter the remarks, attach the supporting document and click on "Submit" to submit the response to the notice.
Responses have to be filed electronically only.

How to know that notice under e-Verification has been issued to me?
The Income Tax Department will issue a notice under Section 133(6) of the Income Tax Act of 1961.
This will be available on your e-filing portal account on incometax.gov.in. The notice is also emailed to the most recent email address supplied to the Income Tax Department when filing the income tax return. You will also receive SMS on the most recent mobile number linked with your PAN.