The Central Board of Direct Taxes in exercise of the powers conferred by sub-sections (1) and (2) of section 135A of the Income Tax Act, 1961 has launched the e-Verification Scheme, 2021 via Notification No. S.O. 5187(E) on 13th December 2021.
Scope of the Scheme
The scope of the Scheme shall be in respect of:
(i) calling for information under section 133 of the Act;
(ii) collecting certain information under section 133B of the Act;
(iii) calling for information by the prescribed income-tax authority under section 133C of the Act;
(iv) exercise of power to inspect registers of companies under section 134 of the Act; and
(v) exercise of power of Assessing Officer under section 135 of the Act.
The Scheme shall be applicable to exercise the functions referred to in sub-paragraph (1) for processing or utilisation of the information which is:
(i) in possession of the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems), as the case may be; or
(ii) made available to the Principal Director General of Income-tax (Systems)or Director General of Income-tax (Systems), as the case may be, by
(a) the Director General of Income-tax (Intelligence and Criminal Investigation);
(b) the Commissioner of Income-tax in charge of the Centralised Processing Centre for processing of returns;
(c) the Commissioner of Income-tax in charge of the Centralised Processing Centre (TDS) for processing of statement of tax deducted at source; or
(d) any other authority, body or person.
Electronic Collection and Verification
(1)The Commissioner of Income-tax (e-Verification) shall collect the information referred to in sub-paragraph (1) of paragraph 3, in accordance with the procedure laid down by the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems), as the case may be.
(2) The Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems), as the case may be, shall make available the information referred to in sub-paragraph (2) of paragraph 3, to the Commissioner of Income-tax (e-Verification):
(i) which was uploaded to the registered account or sent on the registered mobile number, wherever available, of the assessee and not accepted by him or in a case where no response has been received from the assessee within ninety days;
(ii) in respect of which no registered email account or mobile number is on record.
(3) The Commissioner of Income-tax (e-Verification) shall process the information made available to it for initial e-verification.
(4) The initial e-verification by the Commissioner of Income-tax (e-verification) shall be through an automated issuance of communication to the source from where the information is received and the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems), as the case may be, shall enable such automated communication.
(5) In cases where the mismatch between the amount accepted by the assessee and the amount reported by the reporting entity persists, the information after such initial e-verification shall be run through a risk management strategy laid down by the Board and the information found to be no or low risk on such risk criteria, where no further action is required, shall be processed for closure.
(6) The remaining information shall be transferred electronically by the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems), as the case may be, to the Prescribed Authority through a process of automated allocation system.
(7) The verification of the information so allocated, shall be completed by the Prescribed Authority in the manner as per the procedure laid down in this regard by the Director General of Income-tax (Intelligence and Criminal Investigation),with the prior approval of the Board.
(8) The information verified as above, shall be sent back electronically in the form of a preliminary verification report for verification to the Commissioner of Income-tax (e-Verification).
(9) The Commissioner of Income-tax (e-Verification) shall match the preliminary verification report with the information in the return of income of the respective assessee, where such return is available electronically and prepare a final verification report.
(10) Based on the final verification report, the information found to be low risk in accordance with the criteria approved by the Board shall be considered for closure.
(11) The remaining information in the form of final verification report shall be processed in accordance with sub-paragraph 12.
(12) If the information referred to in sub-paragraph (11):
(i) pertains to a pending scrutiny assessment, it shall be made available electronically to the Faceless Assessing Officer or Jurisdictional Assessing Officer, as the case may be.
(ii) does not pertain to a pending scrutiny assessment, it shall be utilised for further necessary action in accordance with the provisions of the Act.
Click here to read the official notification.
CAclubindia
