The Indian government has issued an alert, urging taxpayers to file their income tax returns before the deadline of July 31, 2023. Unlike last year, there will be no extension granted for filing returns beyond this date, as confirmed by sources from the Ministry of Finance.
Taxpayers are advised to file their returns as soon as possible to avoid any last-minute rush or penalties. The returns to be filed pertain to the financial year 2022-23, with the assessment year being 2023-24.
According to information provided by the Income Tax Department, more than 2 crore returns were already filed as of July 11, surpassing the number of returns filed by the same date last year, which was 2 crore. The department appreciates the effort made by taxpayers and urges those who have not yet filed their returns for the assessment year 2023-24 to do so at the earliest.
Last year, a total of 5.8 crore returns were filed, and the government expects this number to increase significantly this year.
Taxpayers who fail to file their income tax returns by the July 31 deadline will be liable to pay a fine of Rs 5,000.
In an effort to enhance scrutiny and improve efficiency, the Income Tax Department has incorporated artificial intelligence (AI) technology in the processing of income tax returns. The AI software program is designed to track and match data from various sources, including PAN cards and Aadhaar cards.
The AI system cross-references transactions associated with the taxpayer’s Aadhaar and PAN with linked bank accounts. It collects comprehensive information about fixed deposits, quarterly interest credits, share dividends, share transactions, mutual fund investments, and long-term and short-term gains from all bank accounts declared in the income tax returns.
Moreover, the AI system will search for undisclosed bank accounts, including joint accounts where the taxpayer is listed as a second or third holder. It will also conduct searches for postal accounts, bank accounts held with cooperative banks and local credit institutions, as well as postal fixed deposits, interests, recurring deposits, Monthly Income Schemes, and senior citizen saving schemes.
The PAN card details will be verified against the government registry office to identify any transactions related to land and immovable properties within the current year and the preceding three years.
The integration of AI technology in income tax scrutiny aims to streamline the process and ensure comprehensive and accurate assessment of taxpayers’ financial information.
