Boosting Tax Compliance: Income Tax Department’s E-Campaign

Introduction

In an effort to promote fair and accurate tax compliance, the Income Tax Department has launched a pioneering e-campaign targeting individuals and entities whose tax payments for the Financial Year 2023-24 do not align with their financial transactions during the same period.

Campaign Overview

Termed as the “Advance Tax e-Campaign-Significant Transactions for A.Y. 2024-25,” this campaign utilizes email and SMS notifications to prompt recipients to reevaluate and adjust their advance tax liabilities in accordance with their financial activities. The deadline for this compliance effort is set for March 15, 2024.

Data Analysis

The initiative stems from the Department’s access to specific financial transaction data acquired from various sources. By analyzing this information against the taxes already paid for the current financial year, the Department identifies individuals or entities whose tax payments are disproportionate to their financial transactions.

Transparency and Access

To facilitate transparency and encourage voluntary tax compliance, the Department includes this transactional data in the Annual Information Statement (AIS) module, which individuals and entities can access through their e-filing accounts. The value of ‘Significant Transactions’ highlighted in the AIS serves as the basis for the Department’s compliance analysis.

Registration Process

For those already registered on the e-filing website, accessing the Compliance Portal to view significant transactions is a straightforward process. However, individuals or entities not yet registered must first complete the registration process on the e-filing website. Upon successful registration, they can access their e-filing accounts and view significant transactions through the e-Campaign tab on the Compliance Portal.

Conclusion

This initiative underscores the Department’s commitment to facilitating taxpayer compliance while enhancing the quality of taxpayer services. By leveraging technology and transparency, the Income Tax Department aims to foster a culture of voluntary tax compliance among individuals and entities, ultimately strengthening the nation’s tax framework.