A ROUND-UP OF EVENTS IN THE INCOME TAX DEPARTMENT, AP & TG REGION RAJASWA RATNAMALA MAY, 2026 8TH EDITION RAJASWA RATNAMALA Income Tax Department, AP & TG Region 23 4,500+ 30+ Major Cities Stakeholders Reached Number of Outreach Events Prarambh-2026: Synchronised Awareness Campaign and Interactive Taxpayer Facilitation Initiatives Voluntary tax compliance is the highest form of civic responsibility. Page 1
1. AWARENESS PROGRAMME: PRARAMBH-2026 The Income Tax Department of Andhra Pradesh & Telangana region launched Prarambh-2026, a mega outreach and awareness campaign designed to facilitate a seamless transition from the Income Tax Act, 1961 to the New Income Tax Act, 2025. Spearheaded by Shri. Suresh Battini, IRS, Nationwide Awareness Campaign on the New Income Tax Act, 2025 RAJASWA RATNAMALA MAY, 2026 8TH EDITIONIncome Tax Department, AP & TG RegionApex event at Hyderabad and outreach facilitation counters A massive program was organised at Vijayawada under the guidance of Smt. Sunita Billa, IRS, CCIT, at the School of Planning and Architecture recorded an overwhelming attendance of around 1,000 participants. Parallely, impactful outreach sessions were conducted at 23 other urban hubs includingVijayawada session organised under the guidance of Smt. Sunita Billa, IRS, CCITEnthusiastic stakeholder participation at the Vijayawada event Voluntary tax compliance is the highest form of civic responsibility. Page 2 Visakhapatnam, Rajahmundry, Kakinada, Tirupati, Kurnool, Nellore, Guntur, Eluru, Kadapa, Anantapur, Bhimavaram, Ongole, Narasaraopet, Chirala, Vizianagaram, Khammam, karimanagar etc. Pr.CCIT, AP & Telangana, the campaign focused on educating taxpayers, professionals, and students on the new tax regime's simplified provisions, rationalised sections, new IT forms, and enhanced compliance frameworks through widespread programs across the AP& TG region.
RAJASWA RATNAMALA MAY, 2026 8TH EDITIONIncome Tax Department, AP & TG Region Voluntary tax compliance is the highest form of civic responsibility. Page 3 At every venue, the department set up dedicated interactive zones displaying innovative tools to simplify complex legal changes: • Kar Saathi AI Chatbot: Dedicated demonstration kiosks allowed users a hands-on experience to query the AI assistant, proving its utility for quick, user-friendly access to tax code information. • Kar Setu Mapping Resources: Comparative bridge literature and brochures, distributed in English and Telugu, were handed out to map changes between the 1961 and 2025 Acts, covering aspects like presumptive taxation, deductions, and modified TDS rates. • AI Video Kiosks: Venues featured multi-episode AI-generated videos alongside scannable QR stands giving instant access to official social media resources. The widespread, active involvement of Chartered Accountants, Tax Bar Associations, Chamber of Commerce, and academic institutions across May 2026 underscored the department's firm commitment to taxpayer facilitation and modernizing public tax administration systems. Stakeholder Engagement
2. CAPACITY BUILDING: LONGEVITY BLUEPRINT Under the guidance of Shri. Suresh Battini, IRS, Pr.CCIT, AP & Telangana, a Workshop on Longevity Blueprint: Redefining Health after 40 was conducted by Dr. Samatha Tulla, an Eminent Speaker, Internal Medicine Physician & Longevity Expert for Officers in the Region above the age of 40 at Amaravati Auditorium, Hyderabad on 11th May 2026.In a first of its kind Workshop for Officers, diverse health topics Redefining Health after 40 RAJASWA RATNAMALA MAY, 2026 8TH EDITIONIncome Tax Department, AP & TG Region related to aging, stress, optimal health, epigenetics, and longevity were discussed by Dr. Samatha with a special focus on the work and lifestyle of senior officers. Factors governing longevity like diet, exercise, movement, stress management, sleep, mindfulness, environment and social relations were explored interactively with the participants. Voluntary tax compliance is the highest form of civic responsibility. Page 4 The Workshop concluded with a lively Q&A Session with the Officers. Questions came in from various stations in the region and were addressed by the speaker. The session was highly appreciated by the participants especially since it takes the logical next step in a deeper understanding the process of ageing & health and not merely limiting to mandatory medical tests.
3. ENVIRONMENT INITIATIVE: PLANTATION DRIVE The Income Tax Department, AP & Telangana, organised a large-scale plantation drive at Income Tax Colonies, Road Nos. 10 & 12, Banjara Hills, Hyderabad, promoting environmental sustainability and community welfare under the leadership of Sri Suresh Battini, IRS, Pr. CCIT AP & TG on 29.05.2026. Income Tax Colonies, Banjara Hills, Hyderabad RAJASWA RATNAMALA MAY, 2026 8TH EDITIONIncome Tax Department, AP & TG Region The Pr.CCIT emphasised the importance of planting fruit-bearing trees to benefit children and senior citizens in the colonies. The initiative reflects the department's commitment to fostering environmental responsibility and creating a sustainable, nutritious green cover for residents. Voluntary tax compliance is the highest form of civic responsibility. Page 5Senior officers participate in the plantation driveFruit-bearing saplings planted for the benefit of residentsSenior officers participate in the plantation drive The event was also attended by Sri Rajarshi Dwivedy, IRS, DGIT (Investigation), Sri Sarish Kumar Irukulla, IRS, CIT (Admin & TPS), and other senior officers of the Department.
4. Inauguration of Transit Accommodation RAJASWA RATNAMALA MAY, 2026 8TH EDITIONIncome Tax Department, AP & TG Region Voluntary tax compliance is the highest form of civic responsibility. Page 6 Transit accommodation at Income Tax Colony, Road No.12, Banjara Hills, Hyderabad was inaugurated by Commissioner of Income Tax (Admin. & TPS), Andhra Pradesh & Telangana, Hyderabad during the month. The Quarter No. D-19 & D-20, Income Tax Residential Colony, Road No. 12, Banjara Hills, Hyderabad, have been converted into transit accommodation and is now ready for occupation. To make the transition even smoother for incoming officers, the quarters have also been furnished with a beds, beddings and mattress, washing machine, water purifier, sofa set, and dining table. With both the structural upgrades and furnishings in place, D-19 & D-20 now offer a clean, comfortable, and move-in-ready space. The premises have accordingly been handed over for allotment and further use. This upgrade reflects the ongoing effort to provide well-maintained, comfortable accommodation for officers on transfer or temporary posting to Hyderabad.
Vol. 1, No. 1, Special Feature | Intelligence & Criminal Investigation RAJASWA RATNAMALA Income Tax Department, AP & TG Region MAY, 2026 8TH EDITION 5. INTELLIGENCE & CRIMINAL INVESTIGATION Inside the Directorate That Turns financial data to Tax Intelligence The reporting thresholds are designed to capture transactions that are significant enough to warrant scrutiny while avoiding unnecessary burden on routine transactions. 5. What the Directorate Actually Does The Directorate performs five core functions: 1. Data Collection: Receiving and processing SFTs from thousands of Reporting Entities across the country. 2. Compliance Monitoring: Ensuring REs file their statements accurately and within prescribed timelines. 3. Enforcement: Cross- referencing reported transactions with filed income tax returns to identify mismatches. 4. E- Verification: Initiating non-intrusive verification of discrepancies through the Compliance Portal. 5. Identification of New REs: Continuously expanding the reporting network by identifying entities that should be filing SFTs but are not yet registered. 1. Introduction Every high-value financial transaction in India leaves a digital trail. Whether it is a cash deposit exceeding Rs. 10 lakh in a savings account, a property purchase above Rs. 30 lakh, or a mutual fund investment crossing Rs. 10 lakh, the transaction is captured and reported to the Income Tax Department. The Directorate of Intelligence & Criminal Investigation (I&CI) is the nerve centre that consolidates these trails into PAN-wise records, creating a comprehensive financial profile for tax intelligence purposes. 2. From a Small Branch to a Nationwide Network The journey began in 2001 with the establishment of the Central Information Branch (CIB), a small unit tasked with collecting information on high- value transactions. Over two decades, this modest branch has evolved into a full-fledged Directorate with 18 regional offices across India, processing millions of transaction records annually and serving as the backbone of the Department's non-intrusive information gathering mechanism. 3. What Is a Reporting Entity (RE)? A Reporting Entity is any institution or person obligated under Section 285BA of the Income Tax Act to furnish Statements of Financial Transactions (SFTs). REs include banks, mutual fund houses, registrars, post offices, bond issuers, and companies buying back shares. Each RE must register through ITDREIN (Income Tax Department Reporting Entity Identification Number) and comply with prescribed reporting timelines and formats under Forms 61A, 61B, and 61. 4. Quoting of PAN and Reporting of SFTs The legal framework mandates PAN quoting in specified transactions under Rule 114B (now Section 159(1) of the new Act) and reporting of SFTs under Rule 114E (now Section 237). A Statement of Financial Transactions (SFT) is a return filed by Reporting Entities detailing high- value financial transactions undertaken by taxpayers. The SFTs are the basic building blocks of intelligence gathered by Income Tax Department. It varies from SFT-001 to SFT-018. 7. The Feedback Loop for REs The Directorate operates a structured correction cycle under Section 285BA(4). When errors or omissions are identified in filed SFTs, REs are issued deficiency notices requiring corrections within 30 days. The feedback mechanism also extends to taxpayers: when a taxpayer disputes a reported transaction, the Directorate facilitates communication between the taxpayer and the RE to resolve discrepancies. This two-way feedback ensures data accuracy and builds trust in the reporting system. 6. What Is an SFT? Voluntary tax compliance is the highest form of civic responsibility. Page 7 Written by Shri. Sankar Pandi P, Addl.CIT(HQ)(Tech.), O/o. PCCIT, AP & TG, Hyderabad
RAJASWA RATNAMALA Income Tax Department, AP & TG Region MAY, 2026 8TH EDITION 8. Enforcement Tools The Directorate has significant enforcement powers to ensure compliance. Non-filing or late filing of SFTs attracts a penalty of Rs. 500 per day under Section 271FA (now Section 271FA of the new Act). For inaccurate reporting, Section 271FAA provides for penalties ranging from Rs. 50,000 to Rs. 5,00,000 depending on the nature and extent of the inaccuracy. Additionally, the Directorate can conduct spot verification under Section 133A to physically verify the books of accounts and records of Reporting Entities. This power is exercised judiciously, typically when there are reasonable grounds to believe that an RE is systematically under- reporting or misreporting transactions. The combination of financial penalties and physical verification powers creates a strong deterrent against non-compliance. The e-Verification Scheme, 2021, represents a significant step in the Department's efforts to bridge the gap between reported income and actual financial activity. Under this scheme, taxpayers whose financial transactions (as reported in SFTs) do not match their filed returns are sent electronic notifications through the Compliance Portal. The process is designed to be non-intrusive, giving taxpayers an opportunity to explain discrepancies before formal proceedings are initiated under Section 148. The E-verification process is as shown below 1. Computer generated mismatch between ITR data and SFT information gathered. 2. Generation of electronic notices to taxpayers through the Compliance Portal. 3. Taxpayer response: filing updated returns, providing explanations, or confirming transactions. 4. Resolution or escalation to formal assessment proceedings if discrepancies remain unresolved. 9. E-Verification: The Precursor to Sections 148 The Directorate's future roadmap focuses on several key areas: 1. Expanding SFT Coverage: Bringing new categories of transactions under the reporting framework, including cryptocurrency exchanges, digital payment platforms, and high-value e- commerce transactions. 2. Enhanced E- Verification: Leveraging artificial intelligence and machine learning to improve mismatch detection and reduce false positives. 3. Real-Time Reporting: Moving towards near real-time transaction reporting to enable faster identification of tax evasion through API integration. 4. International Cooperation: Strengthening information exchange under CRS and bilateral agreements to address cross- border tax evasion. 5. Taxpayer Education: Expanding outreach programs to improve voluntary compliance and reduce the need for enforcement action. Improving the data integrity of the SFTs filed is the major challenge. Another major challenge lies in ever-changing nature of financial transactions, especially with the advent of cryptocurrencies and newer streams of income generation. The Directorate is up to the challenge and has taken up many new projects in the recent years to expand the scope of SFTs to cater to the need of the hour and strengthen the data backbone of the department. . 10.The Road Ahead: Widening the Net 11. Challenges faced by the DirectorateVoluntary tax compliance is the highest form of civic responsibility. Page 8
6. CREATIVE CORNER: SHADOW OF THE GOD! Written by Bharath Adepu, OS, O/o PCIT-2, Hyderabad RAJASWA RATNAMALA MAY, 2026 8TH EDITIONIncome Tax Department, AP & TG Region Voluntary tax compliance is the highest form of civic responsibility. Page 9 Ananya is a modest girl with pretty looks. She is so fair that if we touch her, we may leave our finger-marks on her glowing skin. She is five years old and thoroughly enjoying her childhood. One day, she returns home, her face heavy, and she gazes into the mirror for an extended period. ‘What happened in school today?’, her mother inquired. Maa, why do I have numerous moles on my face when my friends don’t? They are teasing me as if it is my fault,’ said Ananya in a low voice as she wants to know the answer to this question. ‘These moles indicate that you are the most beautiful girl!’, her mother told her with a big smile. Ananya felt awesome to hear this but she is very excited to know more and tell her friends. ‘Maa, how is it related to beauty?’, asked Ananya, out of curiosity. ‘Do you know the most important Rule of the Universe?’, her mother asked. ‘No, I don’t know! What is it?’ Please tell me, said Ananya. ‘Nothing happens in Nature by accident and every event has a defined purpose,’ told her mother. ‘Maa, I want to know how these moles indicate beauty?’, Ananya asked impatiently. ‘Ok, let me explain. Are you aware that Brahma, the creator of the Universe, is responsible for bringing us into existence? ‘, asked her mother. ‘Yes, you told a story about the Hindu deities including Brahma earlier,’ said Ananya. ‘While creating a baby girl, he takes many breaks especially when he wants to create a masterpiece like you’, said her mother. ‘Is that so? How is a break related to my birth mole?’, asked Ananya impatiently. ‘At every break, Brahma puts a mole so that he can resume working from a specific point when he returns. It helps him to avoid duplication of work and improves his efficiency.’, her mother explained patiently. So, it seems he took numerous breaks and invested a considerable amount of time craftingThe universe as a metaphor for wonderThe butterfly: beauty enhanced by natural marks you into a masterpiece, evident from the number of birth moles’, said her mother. ‘WOW! That was truly overwhelming!’ exclaimed Ananya with sheer bliss. ‘Look at the wings of the butterfly! The moles indicate her beauty and enhance her charm! Otherwise, her wings will be plain and dull,’ her mother said. Ananya is on cloud nine and blushing in silence. Being modest, she asked another question to get over this uncomfortable situation as she could not contain the bliss. Maa, why do the moles have to be black? I don’t like the color,’ Ananya inquired, her cheeks still flushed. ‘Do you know that, black is the color of the Divine? And it is considered as the most sacred color because it is from where all the colors of the rainbow have formed,’ her mother said in an enlightened voice. ‘Could you please explain more about it?’ Ananya asked in an inquisitive tone. ‘Ok, listen to me carefully!’ said her mother while taking a deep breath. ‘I am ready!’, said Ananya as she widened her eyes.
RAJASWA RATNAMALA MAY, 2026 8TH EDITIONIncome Tax Department, AP & TG Region Voluntary tax compliance is the highest form of civic responsibility. Page 10 ‘Black is the zero state of the universe, from which all the other colors emerge when the Sun rises. It is manifested as a vacuum in the Universe. The vacuum is always dark as there are no particles to scatter light into our eyes. This ZERO STATE is nothing but Divinity’ said her mother. ‘Maa, I’m having trouble grasping what you just said,’ Ananya admitted. ‘Don’t worry! You are still a small kid and you have plenty of time to understand it.’, said her mother. ‘Now, close your eyes and see what happens?,’ her mother instructed. ‘I can see only darkness as there is nothing else,’ Ananya answered in a scared voice while opening her eyes. ‘Do you know that we are given eyelids to access darkness as it is the roadway to the Divine?’ asked her mother. ‘No, I don’t have any clue about it!’, said Ananya. ‘Most of us witness the darkness during sleep, i.e., at night and some witness it voluntarily by doing meditation. And most of us feel rejuvenated and calm after getting some sleep or engaging in meditation. And the main reason behind this soothing effect is witnessing such darkness, which is a metaphor of the Divine,’ her mother explained. ‘Amma, why is my friend dark-skinned as she feels bad about it, while I am fair?,’ Ananya asked another question. ‘As you already know that darkness is a metaphor of the Divine, God uses it wisely to create a very few blessed people in dark complexion and shows more affection towards them!’ her mother explained with a smile. ‘And beauty cannot be defined by the color of one’s skin; it is rooted in the purity of one’s heart and intentions. Hence, you should learn to embrace harmony and treat everyone as equals, irrespective of their color, caste, creed, nationality, religion, etc.’, said her mother.Beauty beyond complexionA message of harmony and equality ‘ ‘Does it mean that God has less affection towards people, who are fair like me?,’ asked Ananya in a low voice. ‘That’s why he adorned you with black moles, symbolizing his equal affection for all his children,’ her mother answered with a grin. Ananya is blushing again. “The beauty you see in me is a reflection of you.” - Rumi
7. FAREWELL The Income Tax Department bid farewell to eleven dedicated officers and officials who retired on superannuation on 31.05.2026, celebrating their collective years of exemplary service, professionalism, and integrity. Retirements on Superannuation - 31.05.2026 RAJASWA RATNAMALA MAY, 2026 8TH EDITIONIncome Tax Department, AP & TG RegionOfficers and officials who retired on superannuation on 31.05.2026 Voluntary tax compliance is the highest form of civic responsibility. Page 11 Notice Server Shri. Mallikarjuna Rao Kotti, NS, O/o PCIT(VU)-1, Guntur (Kakinada) Tax Assistants Smt. Sarita Polisetty, TA, O/o CIT(Judicial), Hyderabad Smt. Addanki Ganga Bhavani, TA, O/o PCIT-1, Vishakhapatnam Smt. Venkata Ramana Tirupati, TA, O/o PCIT, Vijayawada Shri. Sreeramulu Shekar Bhoompally, SCD, O/o PDIT(Inv.), Hyderabad Income Tax Officers: Smt. Shobha Rani Vuyyuru, ITO, O/o PCIT(RU)-1, Hyderabad Smt. Manju Rani Narra, ITO(AU), 1(1)(5), Hyderabad Shri. Ch. Venkata Paideswara Rao, ITO, Ward 5(1), Hyderabad Inspectors of Income Tax Shri. Mohd. Nawab Pasha, ITI, O/o CIT(Exemptions), Hyderabad Shri. K. Madhusudhana Reddy, ITI, O/o PCIT(AU)-4, Hyderabad (Proddatur) Office Superindenets Shri. Sangati David Raju, OS, O/o PCIT(VU)-1, Guntur (Vijayawada) The department thanks these diverse cadres for driving efficiency, transparency, and revenue collection, wishing them a peaceful retirement.
Editorial Team RAJASWA RATNAMALA MAY, 2026 8TH EDITIONIncome Tax Department, AP & TG Region Voluntary tax compliance is the highest form of civic responsibility. Page 12 1.Shri. Suresh Battini, Principal Chief Commissioner of Income Tax, AP& Telangana 2.Shri. Sarish Kumar Irukulla, CIT(Admn. & TPS), Hyderabad 3.Shri. Sankar Pandi P, Addl.CIT(HQ)(Tech.), O/o. PCCIT, AP & TG, Hyderabad 4.Shri. T.V. Vamsidhar, Addl.CIT(AU)-2(2), Hyderabad 5.Shri. Rajiv Ramesh Meshram, DCIT(HQ)(Tech. & Prosn.), O/o. PCCIT, AP & TG, Hyderabad 6.Shri. Sekhar C R, ITO(Hq.), O/o. PCIT(AU)-2, hyderabad. 7.Smt. Sony Sweety Soren, ITI, O/o. PCIT-1, Hyderabad. 8.Shri. Bharat Adepu, OS, O/o. PCIT-2 Hyderabad. 9.Smt. Pooja Dimri, O/o. PCIT(Audit), Hyderabad.