As part of promoting voluntary compliance through e-verification scheme, 2021, the income tax department has urged the taxpayers to review the Annual Information Statement and update the Income Tax Returns ( ITR-U ) by 31st March 2024.
As part of the e-Verification Scheme-2021, the Income Tax Department is proactively communicating with taxpayers regarding these discrepancies. Through these communications, the taxpayers are encouraged to review their AIS via the e-filing portal and to file updated ITRs ( ITR-U ) where necessary.
Additionally, the department has stated that the eligible non-filers have the option to submit updated returns ( ITR-U ) under section 139(8A) of the Income-tax Act, 1961.
The Income Tax Department gathers data on specific financial transactions of taxpayers from diverse sources. This information is then incorporated into the AIS module, aiming to enhance transparency and encourage voluntary compliance with tax regulations. Taxpayers can access this information for review.
In certain instances of ITRs filed for Assessment Year ( A.Y. ) 2021-22 ( Financial Year 2020-21 ), a discrepancy has been detected between the information provided in the ITR and the data on specified financial transactions available to the Department.
Similarly, in cases where ITRs for A.Y. 2021-22 have not been submitted, and the Department possesses information on specified high-value financial transactions, further scrutiny is required.
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