E-verification Scheme 2021

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Under the provision in Income Tax Act,135A,the CBDT notified a scheme that proposes faceless information gathering. The scheme is aimed at transparency, effectiveness and accountability as it eliminates the interface between taxpayers and the department.

Under this scheme all information will be collected faceless to the extent technologically feasible.This information will also include scenarios where the register of companies needs to be inspected.This e-verification will include either the information that is in possession of designated officials or which is handed down by other official arms including the Director General of Income Tax (Intelligence and Criminal Investigation).

The Government has granted greater power to tax officer to collect more information from the taxpayer and verify it with the information from other agencies.Incase of mismatches in the information reported by the taxpayer and the amount reported after such first e-verification the information can be passed on to the intelligence and crime officer.

This scheme is an attempt at creating more accountability is what industry experts believe.