CBDT e-Verification Scheme 2021 : incometaxindia.gov.in

Organisation : Central Board of Direct Taxes (CBDT)
Facility Name : e-Verification Scheme 2021
Applicable States/UTs : All India
Website : https://incometaxindia.gov.in/Pages/rules/e-Verification-Scheme-2021.aspx

What is e-Verification Scheme 2021?

The e-Verification Scheme, 2021, launched by India’s Income Tax Department (ITD), is a faceless, digital initiative to reconcile mismatches between financial transaction data reported by third parties (like banks) and the income declared by taxpayers in their Income Tax Returns (ITR). It aims to promote voluntary tax compliance and transparency.

Usefulness of the e-Verification Scheme 2021

Various steps have been taken to facilitate voluntary compliance. Sharing of information through AIS and pre-filling of return of income being the most recent. The e-Verification Scheme is another such step.

It 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.

FAQ On e-Verification Scheme 2021

Frequently Asked Questions FAQ On e-Verification Scheme 2021

Where can I see my financial transaction reported to Income Tax Department by Sources/Reporting Entities?
The financial transactions gathered by Income Tax Department are about your receipts which attract TDS/TCS, immovable property purchase or sale, bank deposits, investment in shares/mutual funds, time deposits etc. All these transactions can be viewed by you in the AIS portal of your income tax account for FY 2020-21 onwards.

The steps involved are:
(a) Login to e-filing portal by using the URL https://eportal.incometax.gov.in/
(b) On the home page click the tab “Services”
(c) Select “Annual Information Statement (AIS)” in the menu under the tab “Services”, you will be taken to the AIS portal
(d) On the AIS portal, select the relevant Financial Year and click on “Annual Information Statement” to view the financial transactions.

What should I do if I find a transaction which is incorrectly recorded or which does not pertain to me?
As detailed above, once you are viewing information under AIS, click on a specific information. Once the information details are seen, on the right side is a feedback button by using which taxpayer can provide feedback from the menu options available.

What happens after I raise my objection to any transaction reported in AIS?
Income Tax Department will initiate a process of contacting the Source/Reporting Entity which reported the information/transaction and will seek confirmation about the correctness of the data.

Once this process is rolled out then:
i. If the Source/Reporting Entity agrees that there has been a mistake, the data will be corrected in due course of time after the Source/Reporting Entity files its corrected statement. This process is done through an automated Information Technology driven procedure.

ii. If the Source/Reporting Entity stands by the data and does not support your objection, further explanation/evidence will be called from you under the e-Verification Scheme which is explained in the following questions.

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

How do I know that notice under e-Verification has been issued to me?
​​​The Income Tax Department will send a notice u/s 133(6)​ of the Income Tax Act, 1961. This will be visible on your e-filing portal account on incometax.gov.in. The notice is also emailed to the latest email address submitted to the Income Tax Department while filing the return of income. You will also receive SMS on the latest mobile number registered with your PAN.

What happens if my explanation is found to be satisfactory?
A communication is sent to taxpayer informing that “No further clarification on the issue under verification proceedings is presently required from you”. However, this could change if any additional evidence/information comes to the knowledge of Income Tax Department subsequently.