Using information technology effectively after verification, income tax started sharing financial transaction information with the taxpayer which appears to be either unreported or under-reported in the Income Tax Return (ITR) filed by the taxpayer for FY 19-20.
The Department has been collecting information on financial transactions from multiple sources. The Department confirms the said information with the Source and if the Source states that there is no error, the said information is subjected to risk assessment for e-Verification.
The entire process of e-Verification is digital, with notices issued electronically and responses by the taxpayers also submitted electronically. On completion of the enquiry, a verification report is prepared electronically without any physical interface with the taxpayer.
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 the remaining are under verification.
Scheme has provided an opportunity to the taxpayers to accept the mismatch of information vis-à-vis the original ITR filed and file Updated ITRs u/s 139(8A) for FY 2019-20 for which the last date is 31.03.2023.