ITR e-Verification: What to do if received an e-verification notice?

Taxpayers are rushing to make last-minute efforts to save tax as the final week of the fiscal year 2022-23 draws to a close. In the midst of this commotion, it has come to light that the Income Tax Department has chosen thousands of cases for Income Tax E-Verification, and numerous taxpayers are receiving notices requesting responses. let's take a look at what e-verification is and how to respond to the notice is essential, as this has undoubtedly raised taxpayer concerns.

What is e-Verification?

The ITD's goal under the e-Verification Scheme, 2021, is to verify and provide taxpayers with financial transaction data that does not appear to be included in their Income Tax Return (ITR). Through the e-Verification process, taxpayers have the opportunity to compare the information in their ITR with that in financial institutions and, if necessary, file an updated ITR.

How does the e-Verification work?

• Notices are sent electronically during the e-Verification process, and taxpayer responses are also sent electronically. After the investigation is finished, a verification report is made electronically without talking to the taxpayer in person.
• In the 26AS statement, ITD shares a portion of the financial transaction data it collects from multiple sources with the taxpayer. In any case, so as to really use the information gathered from different sources, the whole data is currently shown to the citizen through the Yearly Data Explanation (AIS).
• The AIS gives an office to the citizen to have a problem with any data on the off chance that the Source has distorted any such data. The Department checks the information with the Source, and if the Source finds no errors, the information is put through an e-Verification risk assessment.

What should taxpayers do when they receive an e-Verification notice?

Taxpayers will be able to view the notice that was sent out as part of the e-Verification scheme in the Compliance Portal, which can be accessed at https://eportal.incometax.gov.in. Typically, an SMS notification is also sent to the registered email address and mobile phone. Here is the process for e-verification.

• The e-filing portal can be accessed by taxpayers by visiting the URL https://eportal.incometax.gov.in/
• Go to "Pending Actions" tab,
• Tap on Compliance Portal and then select e-Verification
• Select on Financial Year
• Click on the 'DIN' for downloading notice.
• Click on the Submit link.
• Enter the remarks, attach the supporting document
• Click on Submit to send a response to the notice.

If a taxpayer's transaction is recorded incorrectly or does not pertain to the specified person, what should they do?

Once, taxpayers viewing AIS data should click on specific data. After the information details have been displayed, taxpayers can use the menu options that are available to provide feedback by clicking the feedback button on the right.

Is the e-Verification of Return identical to the e-Verification Scheme?

The e-Verification Scheme 2021 and the e-Verification of Return are completely distinct, according to the ITD website.