3/14/23, 1:38 PM e-Verification Scheme: Tax department takes up 68,000 cases for e-verification: All you need to know

ed to know about e-verification sch…

English Edition | 14 March, 2023, 01:38 PM IST | Today's Paper

Tax department takes up 68,000 cases for e-

verification: All you need to know about e-
verification scheme
By Sneha Kulkarni, ET Online Last Updated: Mar 14, 2023, 01:20 PM IST

Synopsis
The Income Tax Department had introduced the e-Verification Scheme, 2021, which was
launched on December 13, 2021, to encourage voluntary tax compliance and enable
transparent and non-intrusive tax administration.

Getty Images
To promote voluntary tax compliance
and enable transparent and non-
intrusive tax administration, the
Income Tax Department had
introduced the e-Verification Scheme,
2021, which was announced on
December 13, 2021.

Information on financial transactions

relating to 68,000 cases from FY 2019–20 were selected for e-Verification on a
pilot basis, out of 68,000 instances, approximately 35,000 cases of e-
Verification completed, stated a Press Information Bureau press release.

Also read: Errors in AIS financial transactions? What to do if you get an e-

verification notice from tax department

According to an Income Tax Department tweet, “e-Verification Scheme has

been introduced by ITD to encourage voluntary tax compliance & facilitate a
transparent & non-intrusive tax administration. Using technology,
information of such financial transaction is shared with taxpayers as is
unreported/under-reported in the ITR.”

e-Verification Scheme has been introduced by ITD to encourage voluntary tax

compliance & facilitate a transparent &… https://t.co/oY8b0jJIi0
— Income Tax India (@IncomeTaxIndia) 1678720611000

According to the PIB release dated March 13, 2023, “On a pilot basis, in about
68,000 cases, information of financial transactions pertaining to FY 2019-20
has been taken up for e-Verification. Details of the transactions have been
initially shared with the individual taxpayer through e-campaign. So far, e-
Verification has been completed by the designated Directorate in
approximately 35,000 cases and remaining are under verification.

Collection of taxpayers information

From a variety of sources, the Department has been gathering data on

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3/14/23, 1:38 PM e-Verification Scheme: Tax department takes up 68,000 cases for e-verification: All you need to know about e-verification sch…

financial activities. A portion of it was previously disclosed to the taxpayer in

the 26AS Statement. However the complete information is now presented to
the taxpayer through the Annual Information Statement in order to make
effective use of the data gathered from multiple sources (AIS). If the Source
has reported any information incorrectly, the AIS gives the taxpayer the
option to reject it. The information is verified by the Department with the
Source, and if the Source certifies that there are no errors, the information is
then subjected to risk analysis for e-Verification.

How is it beneficial to taxpayers?

The Scheme is very beneficial to taxpayers since it enables them to provide
proof to support their explanation of a financial transaction. Also, it aids in
data cleaning and rectification, preventing the start of legal action based on
inaccurate information. Also, since the taxpayer is given access to information
about the financial transactions, there is a chance to update or correct income
that may not have been properly reported in the ITR that the taxpayer filed.

As per the PIB release, “In other words, as the e-Verification Scheme makes the
taxpayer aware of the risks, it nudges him/her towards voluntary compliance
by providing an opportunity to the taxpayer to Update the return of income
under section 139(8A) of the Income-tax Act,1961.”

Many taxpayers have filed Updated ITRs as a result of the Scheme's

opportunity for them to accept the information that differs from the originally
filed ITR.

According to the FAQs on the income tax department’s website, the scheme
will help:
Correct inaccuracy in data/information provided by Source/Reporting
Entity

To inform the taxpayer about any transaction which could have been
missed in computing income and taxes, and in filing Return of Income.

To provide an opportunity to the taxpayer to correct any omissions in

Return of Income by filing an updated return of Income and pay tax due
on the income missed in the original Return of Income.

To provide an opportunity to the taxpayer to explain a transaction being

verified before any further action by way of Assessment or Re-assessment
is undertaken.

Is the e-Verification Scheme same as e-Verification of return?

According to the Income Tax department FAQs, “After filing the income tax
return (ITR), you need to verify it to complete the return filing process.
Without verification within the stipulated time, an ITR is treated as invalid. e-
Verification is the most convenient and instant way to verify your ITR. You can
e- Verify your return online using OTP on mobile number registered with
Aadhaar, net banking, digital signature etc. The e-Verification Scheme 2021 is
totally different from e-Verification of return.”

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