As the financial year draws to a close, many taxpayers are finding unexpected emails and SMS alerts from the Income Tax Department in their inboxes. These messages flag possible mismatches in deductions
or exemptions claimed while processing Income Tax Returns (ITRs). While the intent, officially, is to encourage voluntary compliance, the timing and tone of these alerts have left many confused and anxious.
Note that December 31 is the last day to file a belated income tax return (ITR) for the financial year 2024-25. For those who fail to file, they will be required to file Updated ITR later, with a penalty.
Who Is Getting These Alerts?
The messages are largely going out to two groups.
First, salaried employees whose deduction claims in their ITR do not fully match the details mentioned in Form 16, the salary and tax deduction statement submitted by employers.
Second, high-income individuals who have claimed large deductions, often running into lakhs, for donations to charitable organisations.
These emails are not formal notices, do not appear on the income tax portal, and clearly state “do not reply.” However, they indicate that return processing and refunds may be put on hold until discrepancies are reviewed.
Why Are Returns Being Paused?
The department has cited several common triggers:
- Donation claims where the charity’s PAN is incorrect or the organisation is not registered under Section 80G
- Deduction amounts that exceed permissible limits
- Claims under the old tax regime that appear unusually high compared to gross salary
- Mismatches between capital gains reported in the return and data reflected in the Annual Information Statement (AIS) and Taxpayer Information Summary (TIS)
- High claims for house rent allowance or leave travel allowance that do not align with employer disclosures
In many salaried cases, the gap arises simply because investment or deduction details were submitted to employers after internal deadlines, even though such claims are legally allowed while filing returns.
Donations Under Scrutiny
Taxpayers claiming donations above Rs 2 lakh seem to be facing closer scrutiny. While donations to approved trusts are eligible for a 50% deduction, this benefit is capped and subject to strict reporting rules. Any mismatch in certificates or reporting can flag the claim, even if the payment was made through proper banking channels.
Refund Delays Add To Worry
Even taxpayers confident about their claims are concerned about refund delays, with some waiting over four months. Experts point out that the system already has access to detailed donation data through Forms 10BD and 10BE, making verification possible without alarming language.
What Should Taxpayers Do Now?
For now, taxpayers should not panic. Review your return, cross-check claims with supporting documents, and consider filing a revised return before December 31 if an error is found. Many professionals feel these alerts would have been more helpful if sent earlier in the filing season, as guidance, not warnings, so genuine taxpayers had time to reconcile differences calmly.
