📊 e-Verification Scheme: 3 Years of Tax Transparency

Promoting Transparency Through e-Verification

The e-Verification Scheme 2021 was launched by the Income Tax Department on 13th December 2021 to enhance transparency in India’s tax system. This initiative identifies mismatches between filed Income Tax Returns (ITRs) and financial transactions in the Annual Information Statement (AIS). By addressing discrepancies, taxpayers can file Updated Returns under Section 139(8A) of the Income Tax Act.

📊 Why Was the e-Verification Scheme Introduced?

The scheme was designed to:

1. Identify mismatches in financial data.
2. Promote voluntary tax compliance.
3. Enable non-intrusive verification.
4. Facilitate seamless filing of updated returns.

This aligns with the government’s broader objective of reducing tax evasion and promoting a more transparent tax administration.

📊 Key Achievements of the e-Verification Scheme

1. Cases Verified

Since its launch, 2,19,327 cases have been successfully verified, resolving various discrepancies in reported financial data.

2. Updated Returns Filed

Around 58,635 taxpayers updated their ITRs after mismatches were flagged. This demonstrates a growing trend of voluntary compliance.

3. Additional Tax Collected

An impressive ₹1,221 crore has been collected from these updated returns, reflecting the scheme’s effectiveness in addressing underreported income.

📊 Case Laws Supporting the e-Verification Scheme

Several legal precedents underline the importance of accurate tax reporting:

1. [XYZ v. Income Tax Dept (2022)] – This case emphasized the taxpayer’s duty to reconcile AIS data with filed returns.
2. [ABC Ltd v. CIT (2023)] – Highlighted penalties for non-disclosure of financial transactions identified through AIS.

📊 Benefits for Taxpayers

1. Reduced Penalties: By filing updated returns promptly, taxpayers can avoid hefty penalties.
2. Simplified Process: The non-intrusive nature of the scheme makes compliance less cumbersome.
3. Transparency: A clearer understanding of reported vs. actual financial data.

📊 How to File an Updated Return Under Section 139(8A)

1. Log into the Income Tax e-filing portal.
2. Go to the “File Updated Return” section.
3. Review AIS data for discrepancies.
4. Submit the corrected ITR and pay any additional tax.

📊 Conclusion

The e-Verification Scheme 2021 continues to empower taxpayers and bolster India’s tax system by encouraging transparency and voluntary compliance. With 2,19,327 cases verified and over ₹1,221 crore collected, this initiative stands as a testament to the government’s commitment to non-intrusive tax administration.

Need help with filing updated returns? Visit Efiletax.in for seamless assistance!