What to do if a wrong high value transaction appears in 26AS?

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What to do if a wrong high-value transaction appears in 26AS?

 

The government of India has mandated the filing of form 26AS containing specified high-value financial transactions.  This initiative by the government is truly an appreciable step towards tracking income tax avoidances by taxpayers and avoiding illegitimate transactions (if any). Hence, it is important for every taxpayer to verify the transactions appearing in Form 26AS. Else, that can lead to tax notices or demands from income tax officials.

We have already explained in detail the need and requirements related to SFT in our below posts:

All about filing of SFT and consequences of non-compliance

What to do when your 26AS indicate SFT transactions?

Details that will reflect in Form 26AS

However, some taxpayers are noticing irregularities or incorrect data capture in their 26AS. Some taxpayers could see SFT transactions mentioned in their 26AS for the banks with whom they neither have any transaction nor an account. This creates confusion and worries among taxpayers.  In this post, we would be addressing some options available to taxpayers to correct the details in 26AS.

  • In case any taxpayer notices a wrong entry in 26AS that needs to be corrected, the taxpayer should inform the inaccuracy in such statement and furnish the correct information to the specified authority / SFT reporting entities in writing, with a request to make necessary corrections. However, this can be corrected by the specified authorities at their discretion / only if they are convinced about the mistake.
  • At times the taxpayers can face problems to get the 26AS corrected as the SFT reporting entities can turn unresponsive. In such a scenario, it is advised to file your tax return with the correct information/explanation. This will avoid receipt of notices for non-filing of the tax returns.
  • The other option for the taxpayer is to clarify it when the tax department sends notices.


 

CA Janhavi Phadnis

 

Disclaimer: The above content is for general info purpose only and does not constitute professional advice. The author/ website will not be liable for any inaccurate / incomplete information and any reliance you place on the content is strictly at your risk.

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