The Ministry of Finance, through the Central Board of Direct Taxes (CBDT), has announced a significant initiative aimed at simplifying tax compliance and ensuring transparency. On December 17, 2024, the CBDT launched an electronic campaign to address mismatches between income and transactions reported in the Annual Information Statement (AIS) and those disclosed in Income Tax Returns (ITRs) for the financial years 2023-24 and 2021-22.
What Does the Campaign Aim to Achieve?
The campaign seeks to assist taxpayers in reconciling any discrepancies identified in their AIS and ITRs. Additionally, it focuses on individuals who have either not filed their ITRs despite having taxable income or engaged in high-value transactions as reflected in their AIS.
This effort is part of the e-Verification Scheme, 2021, which uses technology to streamline compliance and create a more taxpayer-friendly ecosystem.
How Does the Campaign Work?
As part of the initiative, the Income Tax Department has sent informational messages via SMS and email to taxpayers and non-filers. These messages highlight mismatches and encourage taxpayers to take corrective action. Here’s how taxpayers can participate:
- For FY 2023-24:
- Taxpayers with mismatches are encouraged to file revised or belated ITRs by December 31, 2024.
- For FY 2021-22:
- Updated ITRs can be filed until the limitation date of March 31, 2025.
- Feedback Submission:
- Taxpayers can review the information reported in their AIS and provide feedback, including any disagreements, through the AIS portal available on the e-filing website.
Why Is This Important?
This campaign exemplifies the government’s commitment to leveraging technology for enhancing voluntary compliance and fostering transparency. By using third-party data effectively, the CBDT aims to:
- Simplify the process for taxpayers.
- Promote a culture of accountability.
- Support the vision of “Viksit Bharat” (Developed India).
Call to Action for Taxpayers
The CBDT urges all eligible taxpayers to utilize this opportunity to fulfill their tax obligations. By ensuring accurate disclosures and timely compliance, taxpayers can contribute to the nation’s economic progress while avoiding potential penalties.
