HomeWhat's TrendingImplementation of e-Verification Scheme-2021: Reconciliation of Taxpayer Income Information

Implementation of e-Verification Scheme-2021: Reconciliation of Taxpayer Income Information

The Income Tax Department has rolled out the e-Verification Scheme-2021 to address discrepancies between third-party data on interest and dividend income and taxpayers’ filed Income Tax Returns (ITRs). Numerous cases indicate that some taxpayers haven’t filed their ITRs, prompting the need for reconciliation.

To facilitate this, the Compliance portal on the e-filing website https://eportal.incometax.gov.in now features on-screen functionality. This allows taxpayers to respond directly to the identified mismatches for Financial Years 2021-22 and 2022-23. Notifications via SMS and emails alert taxpayers about these discrepancies.

Registered users can access the Compliance portal by logging into their e-filing accounts, where details of identified mismatches are available under the ‘e-Verification’ tab. Those not registered can easily do so by clicking the ‘Register’ button on the e-filing website, providing necessary details for account creation.

The on-screen functionality simplifies the reconciliation process, allowing taxpayers to respond within the portal without the need for document submission. This proactive approach aims to engage taxpayers systematically, offering them an opportunity to address communication in a structured manner. It’s important to note that the communication is not considered a notice.

For taxpayers who have reported interest income under ‘Others’ in the Schedule OS of the ITR, no additional response is required. The system automatically resolves such mismatches, marking them as ‘Completed’ in the portal.

Taxpayers struggling to explain the mismatches have the option to submit an Updated Income Tax Return if eligible. This comprehensive initiative reflects the Department’s commitment to efficient communication and collaboration with taxpayers, ensuring a transparent and responsive framework for addressing income underreporting issues. It encourages taxpayers to leverage the user-friendly on-screen functionality for a seamless reconciliation process.

Monika Shanmugam