TAX DEPARTMENT LAUNCHES E-CAMPAIGN TO PROMOTE VOLUNTARY TAX COMPLIANCE

TAX DEPARTMENT LAUNCHES E-CAMPAIGN TO PROMOTE VOLUNTARY TAX COMPLIANCE

The taxpayers will be asked to verify their financial transactions under the designated portal under this e-campaign.

With the objective of facilitating the taxpayers to validate their financial transactions, the Central Board for Direct Taxes (CBDT) has launched an e-campaign for the taxpayers. This campaign will commence from 20th July 2020 and will be continuing for 11 days that is till 31st July 2020.
 

Why the E-campaign

As per the statement of Finance, this e-campaign will be targeting those taxpayers who haven’t filed their returns or having discrepancies in the income tax returns filed by them for the assessment year 2019-20. The main objective behind the e-campaign is to promote the voluntary tax compliance by the taxpayers which will eventually prevent them from getting notices or scrutiny procedures from the income tax department.
 

What this E-campaign is all about

The income tax department has identified a few taxpayers who have either faulted at filing their returns or failing to report the high-value transactions. The department has received information’s regarding taxpayers’ high-value financial transactions from multiple sources such as -

  • Statement of financial transactions
  • TDS (tax deducted at source)
  • TCS (Tax collected at source)
  • Foreign remittances
     

The department has also collected information pertaining to the GST, export /import, and various transactions related to securities/derivatives/commodities/mutual funds, etc using the data analytics. With the help of this data analysis, the department has identified those taxpayers who haven’t filed their income tax return for the said assessment year or whose high-value transactions are out of line with the returns filed by them.
 


These identified taxpayers will be notified via SMS or email under this the e-campaign.
 

No need to visit the income tax office

The taxpayers will be asked to verify their financial transactions under the designated portal under this e-campaign. The taxpayers will be able to view the details of such high-value transactions. They will be having the option of submitting their replies online by selecting the relevant options such as

  1. Information is correct
  2. Information is not fully correct
  3. Information related to other person/year
  4. Information is duplicate/ included in other displayed information
  5. Information is denied
     

There would be no requirement to personally visit the income tax office as the whole process will be online.
 

Conclusion

It is important to note that the last date for filing/revising the income tax return for the assessment year 19-20 is July 31, 2020. It will be beneficial for the taxpayers to utilize this campaign to its full effect to avoid any notices or scrutiny from the income tax department for their own comfort and benefit.
 

Edited by Minu Mishra

Want to get your business journey featured on CLIQTAX ? Send an email to us at editor@cliqtax.com