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ITR Filing AY 2025-26: Income Tax SMS Alert Explained | Big Clarification for Taxpayers

ITR filing FY 2024-25: The Income tax department (ITD) on Thursday said the recent communications sent to some taxpayers regarding their transactions are advisory in nature and aimed at facilitating voluntary compliance, not initiating enforcement action.

Income Tax Returns

In a post on X, the department said the messages were issued only in cases where there is an apparent significant gap between disclosures made in income tax returns (ITRs) and information received by the tax department from reporting entities during the year.

“These communications are to facilitate taxpayers and make them aware of the information available with the ITD regarding transactions reported by the reporting entities,” the department said, adding that the outreach is limited to specific cases where discrepancies appear prima facie.

The ITD said the objective is to provide taxpayers an opportunity for voluntary correction by reviewing their Annual Information Statement (AIS) and submitting feedback through the Compliance Portal. Where required, taxpayers can revise returns already filed or file a belated return if they have not done so.

The department reminded taxpayers that the last date for revising or filing a belated return for assessment year 2025–26 is December 31, 2025.

“Taxpayers are requested to respond promptly via the Compliance Portal if discrepancies exist or ignore if your filing is correct,” the IT department said.

Tax refunds had been delayed in some cases as the Income Tax Department scrutinised refund claims flagged as high-value or red-flagged, CBDT Chairman Ravi Agrawal had said on November 17. He said the review followed instances of wrongful deductions and incorrect claims, while low-value refunds continued to be issued.

Earlier in the last month, the Income Tax Department had planned a targeted “nudge” campaign to improve compliance in reporting foreign assets and income in income tax returns filed for Assessment Year 2025–26, based on information received from foreign jurisdictions under the Automatic Exchange of Information (AEOI) framework.

In the first phase, the Central Board of Direct Taxes (CBDT) had identified about 25,000 “high-risk” cases where foreign assets appeared to exist but had not been disclosed in ITRs. These taxpayers were to be contacted through SMS and email advisories, asking them to review their Annual Information Statement (AIS) and revise their returns by December 31, 2025, to avoid penal consequences. The campaign was expected to be expanded from mid-December to cover more cases, according to PTI.

The compliance push coincided with scrutiny of high-value and red-flagged refund claims, which had delayed some refunds. CBDT Chairman Ravi Agrawal had said legitimate refunds were expected to be released by December, even as analysis of wrongful claims continued.

Accurate disclosure of foreign assets and income is mandatory under the Income-tax Act, 1961, and the Black Money Act, 2015, which prescribes strict penalties for non-compliance.

❓ FAQs: ITR Filing AY 2025-26

1️⃣ Why did I receive an SMS or email from the Income Tax Department?

These messages are sent as reminders or information alerts based on income data available with the department.

2️⃣ Does receiving a message mean I have received a tax notice?

No. Most messages are not notices. They are just alerts to help taxpayers file accurate returns.

3️⃣ What should I do after receiving the message?

Log in to the income tax e-filing portal, check AIS/TIS details, and ensure correct income reporting while filing ITR.

4️⃣ Is it mandatory to reply to the SMS or email?

No direct reply is needed. Action is required only if the portal shows pending compliance or mismatch.

5️⃣ Can I ignore the message if my income details are correct?

Yes, but it is always safer to cross-check your records before filing the return.

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