The CBDT has released 24 clarifications through a set of FAQs on the e-Verification Scheme 2021, announced in Notification 137/2021, with the goal of providing general guidance in understanding the procedures and processes thereof.
The Income Tax Department gets a lot of financial data about you (TDS/TCS, property, bank deposits, investments, etc.). From FY 2020–21 these appear in your Annual Information Statement (AIS). If the department’s data doesn’t match what you reported in your tax return, an automated check may trigger a verification process called the e‑Verification Scheme (2021). The goal is simple, i.e. fix reporting errors, tell you if you missed reporting something, give you a chance to explain or fix your return, and avoid unnecessary assessments later.
Where to see your reported transactions: Go to the e‑filing portal: https://eportal.incometax.gov.in → Services → Annual Information Statement → choose the year → view AIS.
If you see something wrong in AIS: Click the item in AIS and use the feedback option to object. The department usually then asks the reporting source to confirm or correct their data (this may take ~3–4 months).
What happens next (the e‑Verification flow)
- If the source corrects their data, AIS gets updated automatically. Great – nothing more from you.
- If the source stands by the data and it looks missing from your tax return, you may get a notice u/s 133(6). This is shown on the Compliance Portal, and you’ll usually get an email/SMS alert.
- You must respond online on the Compliance Portal (no email replies). Attach explanations and documents as needed.
- The authority will either say “we’re satisfied – no more action” or say, “explanation insufficient – you may consider updating your return (ITR‑U) under Section 139(8A).”
Important differences to note
- This is NOT the same as e‑verifying your filed ITR. That’s just how you confirm a return. The e‑Verification Scheme is a department‑initiated check after filing.
- This is a preliminary verification only – not an assessment order. But if you don’t clarify or update, it can lead to assessments/reassessments later.
If you get a notice — how to view and reply
- Log into: https://eportal.incometax.gov.in → Pending Actions → e‑Verification (Compliance Portal) → choose FY → Download notice (DIN) → Submit your response and upload documents.
- Respond only through the Compliance Portal — not by ordinary email.
If you accept that you missed income
- You can file an Updated Return (ITR‑U) under Section 139(8A) to report missed income and pay tax.
- Time limits and added tax:
- You can file an updated return within 2 years from the end of the relevant assessment year.
- If you update within 12 months of the end of the assessment year → an additional 25% of tax (plus interest) is payable.
- If you update within 24 months → an additional 50% of tax (plus interest) is payable.
- The updated return is intended to disclose additional income (you cannot use it to reduce your income or to increase losses). It can be used once per assessment year.
If you disagree with the Department’s info: State clearly in your Compliance Portal response that the entry is wrong or a duplicate and attach proof (bank statements, contract, conveyance, etc.). The department will verify with the source and act.
Practical limits and tech tips
- Attachments: upload up to 10 files, max 10 MB each. If files are bigger, split them.
- If the response page is blank, enable pop‑ups in your browser and/or update to the latest browser version.
- For portal technical help call: 1800‑103‑4215 (Compliance Portal helpline).
- A feature to authenticate notices via DIN will be available soon.
No physical hearings (usually): The scheme is online only. In-person hearings are not allowed; video conferencing may be available in rare cases.
What happens if your explanation is inadequate: You’ll be told to consider updating your return. If you don’t and the department proceeds with assessment/reassessment, you could face tax demands, interest and penalties.
Short practical checklist (what to do if you see a mismatch or get a notice)
- Check AIS for the FY in question.
- If entry is wrong: use AIS feedback to object.
- If you get a 133(6) notice: download it from the Compliance Portal and read carefully.
- Gather supporting documents (bank statements, invoices, sale deeds, TDS certificates, etc.).
- Reply on the Compliance Portal — explain, attach docs, and say whether you’ll update the return.
- If you missed income and are eligible, consider filing ITR‑U and pay the tax + additional percentage (25% / 50% as applicable) with interest.
- If technical issues occur, enable pop‑ups/update browser or call 1800‑103‑4215.
The e-Verification Scheme 2021 aims to match taxpayer-reported income with transaction data reported by others. If there is a mismatch, taxpayers receive electronic notices requesting explanation/evidence, which must be submitted online. The scheme helps improve accuracy in tax reporting and provides an opportunity to correct mistakes before further action.
These FAQs are intended to be informative and advisory in nature and that they may be updated as needed. These FAQs should not be construed as legal interpretations of the e-Verification Scheme, 2021, or the Income Tax Act, 1961.
CBDT Communication dt. 01/02/2023: FAQs on e-Verification Scheme 2021
CBDT Income Tax Notification 137/2021 dt. 13/12/2021: CBDT has notified the ‘e-Verification Scheme, 2021’ for faceless collection of taxpayer’s information by the Assessing Officer (AO), applicable w.e.f. 13/12/2021
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