What happens if the explanation is not found satisfactory?
If the explanation is not found satisfactory, the e-Verification proceedings will be concluded with a communication to the taxpayer informing: “The explanation is not found sufficient to explain the mismatch in the specific information and the taxpayer may consider updating the return of income u/s 139(8A) of the Act, if eligible.” Subsequently if the taxpayer does not Update the Return of Income within the due time, Income Tax Department will undertake risk-assessment based initiation of proceedings like Assessment or Re-assessment which could lead to tax demand and penalty etc.