Income Tax Department Notifies Salaried Taxpayers About Deduction Discrepancies in Form 16



Quick Summary
The Income Tax Department has begun notifying salaried individuals about discrepancies found between their claimed deductions and the information reported in their Form 16. This initiative aims to combat tax evasion by ensuring consistency between what employers report and what employees claim. Taxpayers receiving these intimations are advised to review their tax returns and the Annual Information Statement (AIS) for accuracy and respond via the e-Filing portal within 30 days.

Income Tax Department (ITD) has started sending intimations to salaried taxpayers whose deductions are not in sync with Form 16. This is part of the ITD's efforts to crack down on tax evasion.

Form 16 is a certificate issued by an employer to a salaried employee that specifies the amount of tax deducted from the employee's salary during the financial year. The ITD matches the information in Form 16 with the information in the employee's income tax return. If there is any discrepancy, the ITD will send an intimation to the employee.

Income Tax: Form 16 Deduction Discrepancies Alert

Copy of the Intimation being sent is as follows

It is seen that a claim of refund has been made in the Income Tax Return AUXXXXXX6K and .................. for AY 2023 filed by you on 14-06-23.

Your Income Tax Return has been identified under risk management process of the Income Tax Department. Your confirmation is required on the following claim(s)/ deduction(s)/omissions in the return.

It is seen that you have claimed higher deduction under Chapter VI-A in your return of income compared to the amount reported by your employer in Form 16. Verify your claim In return of Income to maintain consistency with Information reported by your employer in TDS return.

This communication is intended to alert you on any possible incorrect claims / omissions in the above-mentioned return of Income.

Relevant information in respect of your financial transactions is also available in the Annual Information Statement (AIS) under service menu in e-filing portal, post login. Please check before submitting response in respect of this communication to ensure complete and accurate disclosure of your Income.

To submit the response, please login to e-Filing portal » Pending Action » Worklist » Response for Refund Confirmation by selecting the correct option.

  • The claim of refund is correct to the best of my knowledge and belief.
  • Return of Income is being revised wherein. correct claim of refund shall be made.

Please verify the claims made In your Return of Income filed and submit your response accordingly within 30days of receipt of this e-mail. In case of any Incorrect claims/ omissions, please revise your Income Tax Return (ITR) for AY 2023-24.

FAQ :

The Income Tax Department is sending intimations to salaried taxpayers when there are discrepancies between the deductions claimed in their income tax return and the information reported by their employer in Form 16.

These intimations are part of the department's efforts to crack down on tax evasion and ensure consistency in reported financial information.

Form 16 is a certificate issued by an employer to a salaried employee, detailing the tax deducted from their salary during a financial year.

You should verify the claims made in your Income Tax Return and ensure they are consistent with the information reported by your employer in Form 16. You can also check your Annual Information Statement (AIS) for relevant financial transaction details.

You need to log in to the e-Filing portal, navigate to 'Pending Action' > 'Worklist' > 'Response for Refund Confirmation', and select the appropriate option. You can confirm the claim, state that you are revising your return, or provide other relevant information.

You are required to submit your response within 30 days of receiving the intimation.




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