The E-Verification Scheme, notified under Section 260 of the Income Tax Act, 2025, is intended to facilitate voluntary compliance and correct filing of tax returns by displaying financial transaction information gathered from sources through the Annual Information Statement (AIS) on the e-filing portal. Taxpayers can agree or disagree with each AIS information item; where information is disputed, the Income Tax Department will check with the source and correct it if the source supports the disagreement. If AIS information does not match the filed Return of Income, or information indicates taxable income where no return has been filed, the mismatch may be assessed on risk parameters and the taxpayer may receive an electronic notice seeking an explanation. If the mismatch is explained, e-verification is closed; otherwise, further proceedings may be initiated. Eligible taxpayers may file an updated Return of Income under Section 263(6)(a). Where mismatched information persists, it may be pushed to the prescribed authority in the Directorate of Income Tax (Intelligence & Criminal Investigation) for Preliminary Verification, followed by notice under Section 252(1)(a), evaluation of evidence or explanations, preparation of a Preliminary Verification Report, communication of its outcome, and further risk assessment for deciding on proceedings under the Income Tax Act.
Income Tax Department
Central Board of Direct Taxes
E-Verification Scheme
Check Your Annual Information Statement (AIS)
- View your AIS on the Income Tax e-Filing Portal.
- Review the financial transactions displayed in your AIS.
- Calculate your income for filing your Return of Income using the information available in the AIS.
- Check for any discrepancies. If you disagree with any information reported in the AIS, we will check it with the relevant source. The information will be corrected if the source supports your disagreement.
- Open the flap to understand what you should do after reviewing the transactions reported in your AIS.
AIS
>> Filing of Return of Income made easy.
>> Look at your Annual Information Statement (AIS) on e-filing portal.
>> Your financial transactions are displayed on the AIS.
>> You should Agree/ Disagree to each information item in the AIS.
>> If you disagree we will check with the source and correct the information if source supports your disagreement.
>> Use the AIS information to calculate your income for filing your return of income.
e-Verification Scheme
Scheme notified under Sec. 260 of the Income Tax Act, 2025
Why the Scheme
>> Help you in voluntary compliance and correct filing of tax return by sharing information gathered from Sources about financial transactions of the taxpayer.
>> Information gathered about financial transactions displayed to you through Annual Information Statement (AIS)
>> Facility for you to object information.
>> Framework for informing you about mismatch due to information not considered by you in Return of Income filed, or if you have not filed Return of Income.
>> Framework for Income Tax Department to decide on considering proceedings under the Income Tax Act where risk assessment leads to conclusion of inaccurate filing of Return of Income by you.
>> If your financial transactions/income shown in the AIS do not match with the Return of Income filed by you, the mismatch will be assessed on risk parameter and your case could be picked up for e-verification.
>> Similarly, if information suggests that you have taxable income but have not filed Return of Income, e-Verification proceedings will be initiated.
>> You will receive a notice electronically, to explain the mismatch with your Return of Income or to explain why Return of Income is not filed. If the mismatch is explained, the everification is closed. But if the mismatch remains unexplained further proceedings may be initiated.
>> You will receive a notice electronically, to explain the mismatch with your Return of Income or to explain why Return of Income is not filed. If the mismatch is explained, the everification is closed. But if the mismatch remains unexplained further proceedings may be initiated.
>> You can however file an updated Return of Income U/s 263(6)(a), if eligible, to discharge your liability to pay tax on your correct income.
How does the Scheme work
>> Information gathered from Sources made visible to taxpayer through Annual Information Statement (AIS).
>> Taxpayer can object to any part of the information, using facility on the AIS tab on the portal.
>> Based on objection of taxpayer to any information, CIT(e-Verification) verifies with Source: Mismatch resolved or confirmed.
>> If mismatch persists, information assessed for risk.
>> Where taxpayer does not respond and information is not considered by taxpayer in Return of Income filed/ or taxpayer does not file Return of Income, the mismatch is assessed for risk.
>> Such mismatched information is pushed by income tax database to Prescribed Authority in Directorate of Income Tax (Intelligence & Criminal Investigation) for Preliminary Verification
>> Prescribed Authority in the Directorate issues notice u/s 252(1)(a) to taxpayer, and if required to Source or any other related person.
>> Evaluates evidence/explanation.
>> Completes Preliminary Verification Report (PVR) and sends to CIT(e-Verification).
>> Communication sent to taxpayer on outcome of PVR.
>> PVR is the basis for further risk assessment and decision on further proceedings under the Income Tax Act.
