Income Tax Department urges Taxpayers to File ITR-U by 31st March 2024

As part of the e-verification scheme 2021 to encourage voluntary compliance, the income tax department is urging taxpayers to check the Annual Information Statement and to file their updated Income Tax Returns (ITR-U) by March 31, 2024.

The Income Tax Department is proactively communicating with taxpayers about the irregularities. Through these communications, taxpayers are encouraged to review their AIS using the e-filing portal and file updated ITRs (ITR-U) when needed as a part of the e-Verification Scheme 2021.

Furthermore, the department has indicated that eligible non-filers can submit updated returns (ITR-U) under section 139(8A) of the Income-tax Act, 1961.

The Income Tax Department collects data on taxpayers’ specific financial transactions from several sources. This information is then put into the AIS module, with the goal of increasing transparency and encouraging voluntary tax compliance. Taxpayers can review this information.

In several ITRs filed for Assessment Year (A.Y.) 2021-22 (Financial Year 2020-21), a mismatch has been discovered between the information provided in the ITR and the Department’s data on specific financial transactions.

Similarly, if ITRs for the Financial Year 2021-22 have not been submitted and the Department has information on certain high-value financial transactions, more scrutiny is required.