Voluntary compliances for FY 2018-19
The income tax department has recently started a new initiative. This will change the face of the department.
Until now information that the Department used to receive from various sources used to open 6 years old cases causing inconvenience to taxpayers who might have lost documents pertaining to that information. And once the case is opened he needs to go through lengthy scrutiny.
Now in the next 11 days, Dept will send high-risk information that it has collected and analyzed for FY 18-19 to the taxpayers and request them to have a relook. Time to file a return or revised return for FY 18-19 has earlier been extended to 31 July 2020. Hence if you get a call SMS or email from Dept please verify the information and if taxes yet not paid there is time till 31 July to pay tax and file return or revise return. This will also save you from scrutiny and hence there won't be any penalty. You don't have to visit the Income Tax Department as everything will be online. Another positive development is that your 26AS statement which until now used to show tax deduction, advance tax, etc has now started showing your financial transactions in the sale, purchase of mutual funds, bonds, equity, credit card, FD, etc. So you can now check it yourself and file your return reflecting these.
This move is made to encourage voluntary compliances and thus will lead to fewer grievances and will also free up department resources for high tax evasion case.