Synopsis
According to a top Central Board of Direct Taxes official, The Income-Tax Department has selected 68,000 income-tax returns (ITRs) for E-Verification for the assessment year 2019–20 due to disparity in income involving high-value transactions. The e-Verification System for the Income Tax Department was announced on December 13, 2021. It seeks to communicate and confirm with the taxpayer any financial transaction data that appears to be either under-reported or not reported at all in the ITR. A taxpayer has 15 days from the time the I-T department electronically notifies him that his case has been selected for e-verification.
Corporate and Individual income tax filings were included in the list, according to CBDT Chairman Nitin Gupta. According to him, the annual information system (AIS) marked these transactions as high value because they did not match the submitted returns.
The income tax department has begun collecting data on financial transactions related to the fiscal year 2019–20 for e-Verification on a trial basis. The designated Directorate has completed e-Verification in around 35,000 cases thus far, the Ministry of Finance reported on Monday.
Nitin Gupta, the chairman of the Central Board of Direct Taxes (CBDT), stated that these ITRs were chosen as a test and that taxpayers have till March 31 to file revised reports. Yet the taxman selected these 68,000 cases on what criteria. They have been chosen for income under or unreported in tax forms for the 2019–20 fiscal year.
The I-T department has chosen high-value transaction cases, and in the last six months, it has disposed of 35,000 cases, according to Gupta. A total of 15 lakh amended returns have been submitted thus far, and the tax agency has received Rs 1,250 crore in tax.
Without revealing the criterion for choosing an ITR for e-verification, the CBDT Chairman also stated that the risk conditions for selecting returns for e-verification would be set annually. He claims that the 68,000 cases selected for e-verification were chosen because there was a discrepancy between the data from the source about deposits and the tax return that had been filed.
The decision-making process is automated. The CBDT Chairman stated during a media conference in New Delhi that the case will likely be chosen for inspection if you do not react to the e-verification notices. Whenever an assessee submits an updated ITR, there is a decreased likelihood that the case will be selected for review or reassessment.
The e-Verification System for the Income Tax Department was announced on December 13, 2021. It tries to communicate and confirm with the taxpayer any financial transaction data that looks to be either under- or incorrectly reported in their ITR.
When the I-T department electronically notifies a taxpayer that their case has been selected for e-verification, the taxpayer has 15 days to reply to the notification. A case under e-verification must be finished by the CBDT within 90 days, however intricate cases may take longer.
