The Income Tax Department, under the Central Board of Direct Taxes (CBDT), has launched an electronic campaign aimed at resolving discrepancies between the income and transactions reported in the Annual Information Statement (AIS) and those declared in Income Tax Returns (ITRs). This initiative applies to the fiscal years 2023-24 and 2021-22, targeting both taxpayers and non-filers. By addressing these mismatches, the campaign promotes transparency and simplifies compliance, aligning with the broader vision of Viksit Bharat.
What is AIS, and How Does It Work?
The Annual Information Statement (AIS) is a detailed report that provides taxpayers with a comprehensive view of their income and high-value transactions. Accessible through the income tax department’s portal, AIS includes:
- Reported Value: The original data submitted by third parties (e.g., banks, employers).
- Modified Value: Adjusted data based on feedback from taxpayers.
Taxpayers can review their AIS and submit corrections or feedback directly on the portal to ensure the information accurately reflects their financial activities.
Purpose of the Campaign
The electronic campaign serves multiple objectives:
- Addressing Mismatches:
- Resolving discrepancies between AIS-reported data and ITR-declared income.
- Assisting Taxpayers:
- Informing taxpayers via SMS and email about potential inconsistencies.
- Encouraging Compliance:
- Reminding individuals with taxable income or significant high-value transactions to file revised or updated ITRs.
- Simplifying Tax Filing:
- Providing a streamlined process for resolving mismatches through the e-Verification Scheme, 2021.
Key Dates to Remember
| Action | Applicable Financial Year | Deadline |
|---|---|---|
| Filing Revised/Belated ITRs | 2023-24 | December 31, 2024 |
| Filing Updated ITRs | 2021-22 | March 31, 2025 |
Steps to Resolve AIS-ITR Mismatches
Taxpayers are encouraged to follow these steps to address any discrepancies:
- Access the AIS:
- Log in to the Income Tax Department portal to view the AIS.
- Review Information:
- Compare the data in AIS with the income and transactions reported in your ITR.
- Submit Feedback:
- If discrepancies exist, provide corrections or feedback via the AIS portal.
- File Revised or Belated ITRs:
- For FY 2023-24, submit revised ITRs by December 31, 2024.
- For FY 2021-22, file updated ITRs by March 31, 2025.
Key Features of the e-Verification Scheme, 2021
The e-Verification Scheme serves as the backbone of this campaign, ensuring:
- Automated Alerts: Taxpayers are notified via SMS and email about mismatches.
- Simplified Processes: A user-friendly interface for reviewing and correcting AIS data.
- Transparency: Encouraging voluntary compliance without penalties for discrepancies resolved within the stipulated timeframe.
Common Scenarios Addressed in the Campaign
- High-Value Transactions Not Reported in ITR:
- Example: Bank deposits exceeding a specific threshold, unaccounted investments, etc.
- Income Discrepancies:
- Example: Mismatch in salary details or capital gains reported.
- Non-Filing of ITRs:
- Individuals with taxable income or high-value transactions recorded in AIS but no corresponding ITR submission.
Why This Campaign Matters
The initiative reflects the Income Tax Department’s proactive approach to ensuring compliance while minimizing disputes. By offering taxpayers an opportunity to address discrepancies without penalties, the campaign fosters:
- Voluntary Compliance: Encouraging taxpayers to disclose accurate income.
- Simplified Tax Processes: Reducing the complexity of filing corrections.
- Enhanced Transparency: Building trust between taxpayers and the department.
Conclusion
The Income Tax Department’s campaign addressing ITR-AIS mismatches is a step towards creating a transparent and taxpayer-friendly environment. With clear deadlines and accessible tools, taxpayers are provided with ample opportunity to correct discrepancies and avoid potential penalties. The initiative highlights the importance of compliance and the role of technology in simplifying tax processes.
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