Income tax return mismatches: E-verification scheme introduced
Ahmedabad, Mar 16, 2023
The income tax (I-T) department collects income details pertaining to taxpayers from various sources.
The department has identified information discrepancies in 68,000 returns filed for assessment year (AY) 2020-2021. The department has now introduced an e-verification scheme, through which such taxpayers can avoid paying high penalties.
Jainik Vakil, chairman of the direct tax committee of the Gujarat Chamber of Commerce and Industry (GCCI), said, "The I-T department identified 68,000 cases based on information received from reporting entities, where there are mismatches between information received and details provided in the I-T return filed for assessment year 2020-21. To verify such mismatches and avoid issuing notices under Section 148 of the Income Tax Act, the department has started an e-verification scheme. Under this, it has shared information with individual taxpayers. Such taxpayers should review their annual information statement (AIS) and confirm if they have filed I-T returns correctly.
"If the information in the AIS is incorrect, one can reply with an explanation or objection. If the taxpayer finds information in the AIS that is correct but was missed in the return, one can file an updated return for the assessment year 2020-21 till March 31, 2023, by paying tax, interest and an extra 50% tax on such income. This will enable them to avoid reopening of assessment and the consequent penalties. This will also promote voluntary tax compliance."
He said taxpayers should check their AIS and if necessary file updated returns, otherwise they could face Section 148 notices which will lead to scrutiny, tax and penalties.
[The Times of India]