CBDT has introduced another measure towards compliance of Income Tax Returns. The Faceless Income Tax e-campaign was started by the department by bringing in changes in Form 26AS related to SFT Transactions. This is another step towards the e-campaign.
The 12 days e-campaign starting from 20th July, 2020 to 31st July, 2020 focuses on the assessees/taxpayers who are either non-filers or have discrepancies/deficiency in their returns for the FY 2018-19.
The objective of the e-campaign is to facilitate taxpayers to validate online their tax/financial transaction information available with the I-T Department, especially for the assessees for FY 2018-19 and promote voluntary compliance, so that they do not get into notice and scrutiny process.
The main reason behind bringing in this campaign is that the department has identified certain taxpayers with high value transactions who have not filed returns for AY 2019-20 (relevant to FY 2018-19) or who have filed the returns but the high value transactions do not appear to be in line with their Income Tax Return.
Under the e-campaign, the taxpayers will be able to access details of their high value transaction related information on the designated portal. They will also be able to submit online response by selecting among any of these options:
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 and
5. Information is denied.
There would be no need to visit any Income Tax office, as the response has to be submitted online.
For this purpose ‘High Value Transactions’ can be regarded as transactions mentioned in,
1. Rule 114B of Income Tax Rules- Transactions in relation to which quoting of PAN is mandatory,
2. Section 285BA of the Act- Obligation to furnish SFT,
3. Transactions mentioned in Part E of Form 26AS and
4. Such other transactions as specified by Central Government from time to time.