CBDT Launches Campaign for Tax Compliance Transparency

The Central Board of Direct Taxes has launched an electronic campaign to rectify tax discrepancies. Targeting financial years 2023-24 and 2021-22, the initiative aims to enhance compliance using the e-Verification Scheme, urging taxpayers to update records and file accurate returns by specified deadlines.

The Central Board of Direct Taxes (CBDT) has embarked on a groundbreaking electronic initiative designed to boost tax compliance and transparency, addressing gaps between reported income and transactions in the Annual Information Statement (AIS) and those disclosed in Income Tax Returns (ITRs). This strategic move, focusing on the fiscal years 2023-24 and 2021-22, zeroes in on individuals with taxable incomes or high-value operations mirrored in their AIS but not in their filed ITRs.

Part of the broader e-Verification Scheme, 2021, the campaign employs cutting-edge technology to streamline the compliance process. Taxpayers and those missing documentation have received prompts via SMS and email, directing them to scrutinize their financial statements and rectify any inconsistencies. This proactive outreach provides an opportunity for taxpayers to adjust their records, allowing them to submit revised ITRs for FY 2023-24 by December 31, 2024, and for FY 2021-22 by March 31, 2025.

The AIS portal on the Income Tax Department's e-filing platform offers a space for reviewing AIS data and contesting presented information. Through this initiative, the department reaffirms its commitment to creating a taxpayer-friendly environment by leveraging third-party data and advanced analytics. The CBDT encourages eligible taxpayers to participate in this campaign, in line with the government's 'Viksit Bharat' vision, promoting a culture of transparency and responsible financial conduct.

(With inputs from agencies.)