Enhancing Tax Compliance: Income Tax Department’s Actions

Recipients of notices regarding discrepancies in their Income Tax Returns for the assessment year 2021-22 (financial year 2020-21) are urged to file updated returns by March 31, 2024. This call to action is especially directed towards individuals identified through the e-verification scheme due to mismatched or missing information.

Focus on High-Value Transactions

Individuals associated with specific high-value financial transactions, even if they haven’t filed Income Tax Returns for the assessment year 2021-22, are required to file updated returns after thorough examination by the Department.

Transparency and Support

The tax department emphasizes transparency and support through various channels. Under the e-verification scheme-2021, taxpayers are contacted through their registered email addresses. Additionally, taxpayers are encouraged to access their Annual Information Statement (AIS) via the department’s e-filing portal. The AIS provides a comprehensive overview of financial information, facilitating the identification of any inconsistencies with their ITRs and enabling them to file updated returns (ITR-U) if necessary.

Integration for Accessibility

To promote transparency and voluntary compliance, the tax department has integrated this information into the AIS module of the e-filing portal. This integration simplifies the process for taxpayers to review their financial records, ensuring accurate ITR filing and fostering a culture of compliance.

In summary, the Income Tax Department’s initiative aims to strengthen tax compliance standards by addressing discrepancies, encouraging updated returns, and facilitating transparency through accessible channels such as the e-filing portal and the Annual Information Statement.