Income tax stock and vat stock mismatch

If your client's income tax stock figure significantly differs from their VAT stock figure, it's crucial to investigate the reasons. This mismatch could indicate concealed stock, potentially leading to additional income tax. Ideally, stock figures in your Income Tax Return (ITR) should align with your financial accounts. If an adjustment was made in the financial accounts but not reflected in the ITR, a revised return may be necessary. For older tax years like 17-18, you may need to contact your Assessing Officer (AO) to file a revision and pay any additional tax due via self-assessment.