E-Verification Scheme 2021: Press Release of MoF Dt 4 March 2024
Listen the Scheme:
E-Verification Scheme 2021: The Income Tax Department has taken a significant step towards enhancing transparency and fostering voluntary tax compliance with its latest initiative – the E-Verification Scheme 2021. This scheme aims to address mismatches identified in Income Tax Returns (ITRs) filed for Assessment Year 2021-22 (Financial Year 2020-21) concerning specified financial transactions.
Understanding the Mismatch Issue
In certain cases of ITRs filed for A.Y. 2021-22, a ‘mismatch’ has been detected between the information provided in the ITR and the data on specified financial transactions available with the Department. Moreover, for taxpayers who have not yet filed their ITRs for A.Y. 2021-22, the Department possesses information on specified high-value financial transactions that requires scrutiny.
Communication to Taxpayers
Under the E-Verification Scheme 2021, the Income Tax Department is currently sending communications to taxpayers regarding the identified mismatches. These communications are being dispatched to the taxpayers’ registered email accounts. Through this communication, taxpayers are encouraged to review their Annual Information Statement (AIS) via the e-filing portal.
Action Required
If upon reviewing the AIS, taxpayers find discrepancies or omitted transactions, the Department advises filing updated ITRs (ITR-U) promptly. Additionally, eligible non-filers can submit their updated returns (ITR-U) under Section 139(8A) of the Income-tax Act, 1961.
How to Proceed
- To ensure compliance and avoid potential penalties, taxpayers should take the following steps:
- Check your registered email for communication from the Income Tax Department.
- Access the e-filing portal to view your Annual Information Statement (AIS).
- Compare the AIS with the information in your ITR for A.Y. 2021-22.
- If discrepancies are found, file an updated ITR (ITR-U) as necessary.
- Eligible non-filers can submit their returns under Section 139(8A) of the Income-tax Act, 1961.
Conclusion
The E-Verification Scheme 2021 is a proactive measure by the Income Tax Department to promote transparency and voluntary tax compliance among taxpayers. By promptly addressing mismatches and updating ITRs where required, taxpayers can ensure smooth tax filing processes and avoid potential penalties.
Stay tuned for further updates and ensure to check your registered email regularly for communications from the Income Tax Department. For more information and assistance, visit the official e-filing portal of the Income Tax Department.
To Access the related Press release of Ministry of Finance CLICK HERE
To Read about Taxability of Gifts under Income Tax CLICK HERE
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