IT department conducts verification of third-party reporting compliance
1 min read 01 Jul 2023, 01:06 AM ISTThe verification was done to check the compliance of reporting of transactions by entities such as banks and forex dealers.
PremiumNew Delhi: The Income Tax Department has detected lapses in the reporting of customer transactions by a bank in Tamil Nadu during a verification, the department said in a statement.
The verification was done to check the compliance of reporting of transactions by entities such as banks and forex dealers. The information reported by these entities helps the department in ensuring voluntary compliance by tax payers.
The information given by the reporting entities is shown to the taxpayer, through the e-filing account, in the form of an annual information statement (AIS). This is an important step towards facilitating taxpayers for filing their return of income accurately, the department said.
While most reporting entities voluntarily comply with the statutory requirements of filing correct and complete statements of specified financial transactions (SFTs), defaults have been noticed in some cases.
During the verification process at the Tamil Nadu based bank, several discrepancies were found, the department alleged.
"It was seen that the bank had not filed SFTs in certain cases and in some others, had not filed complete or accurate particulars. SFTs were not filed in respect of (transactions like) cash deposits of over Rs.2,700 crore involving more than 10,000 accounts, specified Credit card payments involving total transaction value of over Rs.110 crore, dividend distributed of more than Rs.200 crore and shares issued of over Rs.600 crore," the department said in the statement.
Also, SFTs already filed by the bank were found incomplete in several respects. The bank had failed to report major transactions which included Interest paid of more than Rs.500 crore, the department said.
In the recent past too, verification was conducted by the department on two cooperative banks in Uttarakhand and transactions not reported by the banks were identified, the department said.
