In lieu of providing convenience for taxpayers, the department of income tax of India initiated the process for an e-campaigns for voluntary compliance. From July 20th, till July 31st, 2020, this campaign focuses on taxpayers who have disparity while tax filing their returns or are non-filers in the financial year of 2018/19.
The campaign’s primary objective is to help taxpayers validate their online financial transactions according to the IT Department to promote voluntary compliance. This helps avoid the scrutiny process, notices, etc.
According to the e-campaign, the government sends SMS/emails after identifying taxpayers and verifies their financial information relating to transactions such as the SoFT, Tax Deducted at Source, Tax Collected at Source, Foreign Remittances, etc.
It has also collected necessary GST details, import/export, and transactions under derivatives, securities, mutual funds, commodities, etc. with the help of information triangulation that’s been set up, with data analytics.
The data analysis exercise has also helped identify taxpayers who have made transactions of high value and haven’t filed their AT 2019-20 returns. Apart from the non-filers, the department also recognized another group wherein the transactions were not syncing with the IT return that’s regularly charged.
Taxpayers can access details pertaining to information related to transactions with high values, with the e-campaign. They can also submit online responses by choosing these options – 1. Information is true, 2. Information is partially true 3. Information is in accordance with others, 4. Information is included/mentioned in other displayed information, and 5. Information is rejected.
The move ensures taxpayers won’t have to visit the I-T offices and complete the process online.