“Explore the E-Verification Scheme 2021 in India, a crucial tool for validating taxpayer data. Understand its objectives, processes, and FAQs for smoother tax compliance. Learn how it enhances transparency, promotes voluntary compliance, and facilitates correction of data, ensuring accurate and efficient tax assessment. Access the Compliance Portal, raise objections, and respond to notices for a seamless experience. Stay informed and compliant with the E-Verification Scheme for a transparent tax regime in India.”
The E-Verification Scheme 2021 in India is a crucial system designed to validate and cross-verify information provided by Reporting Entities (REs) or sources with the Income Tax Return (ITR) filed by taxpayers. This scheme plays a pivotal role in promoting voluntary tax compliance, enhancing transparency, and utilizing technology for non-intrusive tax compliance. Taxpayers are provided with the opportunity to explain or rectify any discrepancies in the reported data, ensuring more accurate and efficient tax assessment.
E-Verification Scheme, 2021
- To verify information received from Reporting Entities/Source with the ITR filed by the taxpayer.
- Information disputed by the taxpayer is reconfirmed from RE/ Source.
- If mismatch still persists, the mismatch is shared with the taxpayer for clarification/filing updated ITR u/s 139 (8A) of I.T. Act, 1961, if eligible.
Objectives of the Scheme:
- Promoting Voluntary Compliance. Copyright02022
- Enhanced transparency. Income Tax Department
- Opportunity to the Taxpayer to explain the data.
- Use of technology for non-intrusive tax compliance.
- Facilitating correction of data.
Processes requiring taxpayer’s attention:
1) View MS and submit objection if any:
a) Login to https://eportal.incometax.gov.in
b) On the home page click the tab “Services”
C) Select “Annual Information Statement (AIS)” under tab “Services”.
d) Select the relevant Financial Year.
e) Click on “Annual Information Statement” to view the financial transactions.
f) Click on a specific information.
g) On the right side is a feedback button by using which taxpayer can provide feedback from the menu options available, which are:-
- Information is correct.
- Information is not taxable.
- Information is not fully correct.
- Information relates to their PAN/Year.
- Information is duplicate/included in other information.
- Information is denied.
2) Respond to 133(6) notice:
a) Login to https://eportal.incometax.gov.in
b) Go to “Pending Actions” tab, click on “Compliance Portal” and select “e-Verification”.
c) Click on applicable Financial Year.
d) Click on the ‘DIN’ to download the notice.
e) Click on ‘Submit’ link to provide the response.
f) 10 documents of size 10 MB each can be uploaded.
Steps to follow in case of Technical Difficulty:
- To respond only on compliance portal by accessing on incometax.gov.in.
- Update web browser to the latest version.
- Disable POP-UP blocker.
FAQs :
1. What happens after taxpayer raises an objection to any transaction reported in AIS?
Income Tax Department will seek confirmation from the source/reporting entity about the correctness of the data, then:
i. If there has been a mistake, the data will be corrected.
ii. If data is correct, further explanation/evidence will be called.
2. What is the usefulness of the e-Verification Scheme, 2021?
- 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.
- To provide an opportunity to the taxpayer to explain a transaction being verified before any further action by way of Assessment or Reassessment is undertaken.
3. How taxpayer will know that notice under e-Verification has been issued to taxpayer?
- Visible on taxpayer e-filing portal account on gov.in.
- E-mail to the latest e-mail address.
- Taxpayer will also receive SMS on the latest mobile number registered.
4. What taxpayer can do in case they are having difficulty in accessing the Compliance Portal for viewing notices or submitting responses?
Taxpayer may log complaint at the helpdesk for “Compliance Portal” by calling ‘18001034215’.
5. What can taxpayer do if they have missed a transaction while calculating income in the Return of Income already filed?
- Consider Updating Return of Income under Section 139(8A) of the I.T. Act, 1961.
- Pay tax on the missed income along with additional tax to avoid further proceedings.
- Response can be submitted that the mismatch is accepted and ITR has been updated or will be updated.
- Mismatch determined under the e-verification scheme will be subject to risk assessment for further proceedings, if the ROI is not updated expeditiously.
Conclusion: The E-Verification Scheme 2021 in India is a pivotal tool for promoting tax compliance, enhancing transparency, and allowing taxpayers to verify and rectify reported data. With the ease of electronic verification, it facilitates a smoother and more efficient tax assessment process while ensuring that taxpayer concerns and discrepancies are addressed effectively. Taxpayers are encouraged to use the scheme to correct inaccuracies, improving the accuracy of their tax returns and promoting voluntary tax compliance.
For further details, please refer to FAQs section on www.incometax.gov.in
(Republished with amendments)
