Indore (Madhya Pradesh): Sunita Bainsla, principal director general of Income Tax, (Intelligence and Criminal Investigation-I&CI) New Delhi, has said that the department is cross-checking information about expenditures gathered through various sources with information given by the taxpayer in his annual income returns.
Bainsla was addressing an awareness seminar on e-verification scheme 2021 of the department here at Aaykar Bhawan on Friday. The department introduced the scheme on December 13, 2021. It is a step towards ensuring tax compliance and identifying unreported or under-reported financial transactions by taxpayers.
The scheme allows taxpayers to update their income returns by confirming the information provided or stating that the ITR files were reported incorrectly and updating the ITR accordingly. Chartered Accountants Associations’, Tax Law Bar Association, Income Tax Practitioner Association and various trade associations participated in this seminar.
She discussed in detail the work being done by the Income Tax department regarding the implementation of the entire process and scheme. She said that today times are changing and the methodology of the department is also changing accordingly.
Today the information collected and available from various sources to the Income Tax department is being cross-checked with the ITR of the respective year filed by the taxpayers. She said that e-verification scheme is beneficial for the taxpayers in today's context.
If the taxpayer feels that he has not included this income in his respective income tax return, he can avoid the troubles of various scrutinies, prosecution, and penalties by updating and submitting an updated income tax return.
Taxpayers whose information is wrong in the notice issued by the department can file the correct answer to the notice issued along with necessary related documents. After checking the veracity of the reply, the department can wind up such cases in the preliminary investigation, so that the taxpayer can avoid the penalty action taken by the department in future.