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Nov 22, 2025
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Ignoring mismatch notice may result in a tax demand
Taxpayers are increasingly getting system-generated intimations under Section 143(1)(a) for discrepancies in returns filed and annual information statement (AIS) or Form 26AS. They must respond by submitting clarifications or file a revised return by December 31.
Non-response to income tax intimations can lead to disallowing of claimed credits or deductions. It may also trigger penalty proceedings for concealment or non-compliance, including fees and interest of Sections 234B and 234C on such outstanding tax dues.
Sandeep Sehgal, partner, Tax, AKM Global, a tax and consulting firm, says the rise in system-generated intimations under Section 143(1)(a) is due to the automated mismatch detection process employed by the income tax department’s Central Processing Centre. “Such notices alert taxpayers and identify the discrepancies as part of enhanced compliance and data validation efforts,” he says.
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