68,000 cases marked as non-compliant in 2019-20 income tax returns

Taxpayers have until March 31 to file updated returns for the 2019-20 fiscal period. (File)

New Delhi:

CBDT chief Nitin Gupta on Monday took up nearly 68,000 cases for e-verification by the Income Tax department for under-declaration of income in tax returns for the 2019-20 fiscal.

Under the e-verification scheme, the IT department informs taxpayers about discrepancies in the Annual Information Statement (AIS) on financial transaction and IT returns filed. The taxpayer can respond to the tax department with an explanation of the discrepancy or submit updated reports if he considers the discrepancy identified in the electronic confirmation message to be correct.

“About 68,000 cases related to 2019-20 were taken for electronic review on a pilot basis according to the parameters of risk management established by the department. In 56 percent of them, or 35 thousand cases, the taxpayer gave a satisfactory answer. sent to notice or updated tax return,” said Nitin Gupta.

He said that so far a total of 15 lakh updated returns have been filed and Rs 1,250 crore tax has been collected.

However, there is no answer in the remaining 33 thousand cases.

Taxpayers have until March 31, 2023 to file an updated return for income earned during the fiscal year 2019-20.

Once an assessee updates his ITR, his chances of getting his case for scrutiny or reassessment are reduced,” said Nitin Gupta during a media interaction here.

The risk parameters for selection of returns for e-verification will be fixed annually, Gupta said, without disclosing the criteria for selecting ITRs for e-verification.

“68,000 cases received for e-verification are based on discrepancies between tax returns and sourced data regarding deposits. The selection is done by computer. If you do not respond to e-verification notices, there is a high probability that this case will be selected for verification,” said Nitin Gupta.

Urging taxpayers to review their AIS regularly, Nitin Gupta said taxpayers should provide feedback to the department if they notice any discrepancy.

“The e-verification scheme is a non-intrusive way to encourage taxpayers to submit updated returns in case of non-compliance. It is open, without any human interface, encourages voluntary compliance and helps shorten court proceedings,” said the head of the Center. Board of Direct Taxes (CBDT).

After the department notifies the taxpayer electronically that his case has been submitted for electronic audit, the taxpayer is given 15 days to respond to the notice from the IT Department. CBDT has a deadline of 90 days to complete a specific case under e-verification, but complex cases may take longer.

The e-verification scheme was notified on December 13, 2021, and the pilot version was launched in September 2022. The last date for submission of the updated declaration for the fiscal period 2019-20 will end on March 31, 2023.

(Except for the headline, this story was not edited by NDTV staff and was published on a syndicated channel.)

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