• By ADMIN
• Posted 26 Mar, 2024
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Understanding the e-Verification Scheme, 2021: A Digital Revolution in Income Tax Verification

Commencement and Definitions:
The e-Verification Scheme, 2021, marks a significant leap in the digitization of income tax verification processes. Commencing upon its publication in the Official Gazette, this scheme revolutionizes the verification landscape by leveraging technological advancements. Key definitions under this scheme include "Act," "addressee," "authorised representative," "automated allocation system," "Commissioner of Income –tax (e-Verification)," and various other terms essential for understanding its scope and implementation.

FAQs:

1. What is the e-Verification Scheme, 2021?
The e-Verification Scheme, 2021, is a digital initiative introduced to streamline income tax verification processes through electronic means.

2. When does the Scheme come into force?
The Scheme comes into force upon its publication in the Official Gazette.

3. Who are the key authorities involved in the Scheme?
Key authorities include the Commissioner of Income-tax (e-Verification), Principal Director General of Income-tax (Systems), Director General of Income-tax (Intelligence and Criminal Investigation), and other designated personnel.

4. What is the significance of the designated portal?
The designated portal serves as the central platform for electronic filings, communications, and verification processes under the Scheme.

5. How are electronic records authenticated under the Scheme?
Electronic records are authenticated through digital signatures, ensuring their integrity and authenticity.

Scope of the Scheme:
The scheme's scope encompasses calling for information under various sections of the Income-tax Act, including scrutiny assessments and inspection of company registers.

FAQs:

6. Which functions fall under the scope of the e-Verification Scheme?
The Scheme covers calling for information, collecting data, and exercising various powers granted under the Income-tax Act.

7. Who can utilize the information processed under the Scheme?
Information processed under the Scheme can be utilized by designated authorities such as the Commissioner of Income-tax (e-Verification), Centralised Processing Centre, and other relevant bodies.

Electronic Collection and Verification:
The scheme facilitates electronic collection, processing, and verification of information through automated systems and risk management strategies.

FAQs:

8. How is information collected and processed under the Scheme?
Information is collected electronically and processed through automated systems, reducing manual intervention and enhancing efficiency.

9. What happens if there is a discrepancy in the information provided by the assessee?
Discrepancies are addressed through a risk management strategy to ensure accurate verification and closure of cases.

Issue and Service of Notice:
Notices for verification purposes are issued electronically under digital signatures, ensuring prompt communication and compliance.

FAQs:

10. How are notices issued and served under the Scheme?
Notices are issued electronically under digital signatures, and responses are expected to be furnished electronically as well.

11. What is the timeline for responding to notices under the Scheme?
Responses to notices should be furnished by the specified date or within an extended period as permitted by the Prescribed Authority.

No Personal Appearance:
Personal appearances before authorities are minimized, with provisions for video conferencing or telephony in exceptional cases.

FAQs:

12. Are personal appearances necessary under the Scheme?
Personal appearances are generally not required, except in exceptional circumstances where video conferencing or telephony may be allowed.

Communication exclusively by Electronic Mode:
The Scheme mandates electronic communication between relevant authorities, promoting efficiency and transparency.

FAQs:

13. How are communications conducted under the Scheme?
All communications between authorities and taxpayers are conducted electronically, reducing paperwork and expediting processes.

14. What happens if a taxpayer does not have access to electronic communication?
Provisions are made for electronic delivery and response to notices, ensuring accessibility for all taxpayers.

Authentication of Electronic Record:
Electronic records under the scheme are authenticated using digital signatures, ensuring their integrity and authenticity.

FAQs:

15. How are electronic records authenticated under the Scheme?
Electronic records are authenticated through digital signatures, ensuring their validity and reliability.

Power to Specify Procedure and Processes:
Authorities are empowered to specify procedures and processes for effective implementation of the Scheme.

FAQs:

16. Who is responsible for specifying procedures under the Scheme?
The Director General of Income-tax (Intelligence and Criminal Investigation) and the Director General of Income-tax (Systems) are responsible for specifying procedures and processes, ensuring smooth implementation of the Scheme.

Conclusion:
The e-Verification Scheme, 2021, heralds a new era of digital transformation in income tax verification. By harnessing the power of technology, it streamlines processes, enhances transparency, and accelerates decision-making. As taxpayers and authorities adapt to this paradigm shift, the scheme promises to revolutionize income tax verification, ensuring a more efficient and equitable tax ecosystem.