Important Keyword: Income Tax Department, E-Compliance Portal, e-mails, SMS, phone calls, notices, letters, E-Campaign, Statement of Financial Transactions.
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It sounds like the Income Tax Department is leveraging various data sources to cross-verify taxpayers’ financial information and ensure compliance with tax regulations. The e-campaign tab on the income tax compliance portal seems to be a proactive measure to engage taxpayers and address any discrepancies or issues identified through these data sources.
Through e-mails, SMS, phone calls, notices, and letters, the department is reaching out to taxpayers to prompt them to visit the income tax compliance portal and provide feedback or responses regarding the identified issues. This approach allows for a more streamlined and efficient process of resolving discrepancies and ensuring compliance.
The types of data being verified cover a wide range of financial transactions, including TCS, TDS, Statement of Financial Transactions (SFT), foreign remittances, exports, imports, as well as transactions in mutual funds, commodities, securities, and derivatives. This comprehensive approach reflects the department’s commitment to thorough scrutiny and enforcement of tax laws.
It seems like the SMS notifications for the e-campaign are sent to taxpayers under various circumstances:
If they have not filed their Income Tax Return.
If there are discrepancies or deficiencies in their filed Income Tax Returns.
Even if taxpayers have correctly filed and processed their income tax returns, they are still expected to provide feedback upon receiving such notifications. This feedback mechanism is crucial as it allows taxpayers to address any discrepancies or errors, including those resulting from AIS (Automated Income System) errors, and provide necessary information to the Income Tax Department.
The options for providing feedback are likely outlined under the e-Campaign section on the income tax compliance portal’s home page, providing a structured way for taxpayers to communicate with the department regarding any issues identified. This ensures transparency and enables effective resolution of discrepancies while also providing an avenue for taxpayers to address any misunderstandings or errors promptly.
Steps to access and submit a response on the e-compliance portal
Login to Income Tax Portal Login to incometax.gov.in using your PAN/Aadhaar and OTP/password. Navigate to ‘Pending Actions’ > ‘Compliance Portal’ > E-Campaign (AY)
2. Select the relevant e-campaign
Choose the relevant Assessment year, select e-campaign and click on ‘Provide Feedback in AIS’
3. Select the Information Category
The information for which you would have received communication would be marked with an ‘e’ (suggesting expected feedback).
4. Select the Transactions
The transactions for which the feedback is required would be marked as ‘Expected’. Taxpayers can provide Bulk Feedback as well for all transactions at once.
5. Select the Response and Submit
Based on your response, select the most appropriate option from the following: – Information is correct – Income is not taxable – Information is not fully correct – Information relates to other PAN/year – Information is duplicate/included in other displayed information – Information is denied
Categories for which the taxpayer’s response is expected under e-campaign:
Under the “Preliminary Response” section on the e-compliance portal, taxpayers are prompted to provide initial answers to specific questions aimed at resolving queries and potentially avoiding future notices and scrutiny from the tax department. These queries typically revolve around campaign-type issues such as non-filing of returns and high-value transactions.
For example, one of the queries in this section may inquire whether the taxpayer has filed an income tax return for a specific campaign type, such as “Non-Filing of Income Tax Return.” The taxpayer would need to respond with either a “Yes” or “No” based on their filing status regarding that particular campaign type.
Providing a preliminary response allows the tax department to quickly assess the taxpayer’s situation and take necessary actions to resolve any issues. It serves as an initial step in the compliance process and helps streamline communication between the taxpayer and the tax authorities.
By promptly providing accurate responses to these queries, taxpayers can help facilitate the resolution of any potential discrepancies or concerns, thereby ensuring compliance with tax regulations and minimizing the likelihood of further notices or scrutiny.
When submitting feedback on the e-compliance portal, additional details may be required based on whether the income tax return (ITR) has been filed or not. Here are the additional details needed for each category:
If ITR has been filed:
Acknowledgment number filed for the relevant Assessment Year (AY).
Date of ITR filing.
Select the mode of ITR filing (e.g., if it was e-filed).
Enter the circle/ward and city of the taxpayer (This is not required if the ITR was e-filed).
Remarks (Optional): Any additional comments or information you wish to provide.
If ITR has not been filed:
Select the reason for not filing the ITR from the provided options.
Remarks for not filing ITR: Additional comments or explanations regarding why the ITR was not filed.
For both scenarios, it’s essential to provide accurate and complete information to facilitate the resolution of any queries or issues raised by the Income Tax Department. This information helps the department assess the taxpayer’s compliance status and take appropriate actions accordingly.
Feedback on Information on AIS (Annual Information Statement)
Feedback on Information on AIS (Annual Information Statement) is crucial for taxpayers to ensure the accuracy of their financial data. The AIS Consolidated Feedback file (ACF) allows taxpayers to review and provide feedback on their AIS information. Here are the feedback options available for each information detail:
Information is correct: Select this option if the information provided in the AIS is accurate and matches your records.
Information is not fully correct: Choose this option if there are discrepancies or inaccuracies in the AIS information, but some parts of it are correct.
Information relates to other PAN/Year: If you believe that the information pertains to a different PAN (Permanent Account Number) or a different assessment year, select this option.
Information is duplicate / included in other information: Use this option if you find duplicate entries in the AIS or if the information is already included in another section.
Information is denied: Select this option if you deny the accuracy of the information provided in the AIS.
When providing feedback, it’s essential to choose the most appropriate option based on the accuracy of the information presented. This feedback helps the Income Tax Department ensure the correctness of the AIS data and address any discrepancies or errors effectively.
High transaction value can get you an Income Tax Notice
Reporting all significant transactions to the income tax department is essential for taxpayers to maintain compliance with tax regulations. Failure to disclose such transactions in Income Tax Returns (ITR) filing could lead to notices from the authorities.
To ensure transparency and compliance, the Income Tax Department collaborates with various government agencies to obtain financial records of individuals involved in high-value transactions. If taxpayers fail to disclose these transactions in their tax filings, the department may issue email and SMS alerts regarding the non-disclosure of high-value transactions linked to their PAN numbers.
These alerts serve as a means to encourage voluntary compliance among taxpayers and prevent the need for issuing notices and initiating scrutiny procedures. By proactively disclosing all relevant financial transactions, taxpayers can avoid potential penalties and scrutiny from tax authorities while upholding their legal obligations.
Here are some transactions listed in your 26AS/AIS that could prompt a notice from the Income Tax Department (ITD):
Fixed Deposits: Deposits exceeding Rs. 10 lakh in one or more fixed deposits need to be disclosed. Banks are required to report such deposits to the IT department.
Savings and Current Bank Deposits: Transactions exceeding Rs. 10 lakh in a savings account and Rs. 50 lakh in a current account during a financial year must be reported to the IT department.
Purchase or Sale of Immovable Property: Any purchase or sale of immovable property for Rs. 30 lakh or more should be reported to the tax authorities. This transaction needs to be disclosed in Form No. 26AS.
Foreign Currency Transactions: Foreign remittances exceeding Rs. 2 lakh for travel purposes need to be reported in your Income Tax Return (ITR). This includes remittances made via debit card, credit card, insurance of a traveler’s check, or any other instruments.
These transactions are monitored by the IT department to ensure compliance with tax regulations. Failure to report such transactions accurately may result in the issuance of notices by the authorities. It’s essential for taxpayers to disclose all relevant financial transactions to avoid penalties and scrutiny.
Important Keyword: E-Compliance Portal, Income Tax Return, Income Tax Website, IT Notice.
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Submit Response on E-Compliance Portal
In India, meeting income tax return deadlines is crucial to stay compliant with the law. Let’s simplify the key dates and consequences to ensure you’re on track with your tax obligations.
1. Original Income Tax Return (ITR) Filing Deadline:
For individuals not subject to tax audit: The deadline is July 31st following the end of the financial year.
For those undergoing tax audit: The deadline extends to September 30th after the financial year concludes.
2. Belated or Revised Return Filing Deadline:
If you miss the original deadline, you can file a belated return under Section 139(4) or a revised return under Section 139(5) until March 31st of the subsequent year.
Consequences of Missing Deadlines:
Failure to file by the due date leads to notifications from the Income Tax Department. They may reach out via email or SMS to remind non-filers about their obligations.
In the financial year 2018-19 (Assessment Year 2019-20), the Income Tax Department sent SMS alerts to numerous taxpayers who hadn’t filed their returns.
Remember, timely filing not only avoids penalties but also ensures you’re fulfilling your legal duties. Stay informed and meet your tax deadlines to enjoy a hassle-free tax season. If you have any doubts, consult a tax professional for guidance.
The Income Tax Department employs a sophisticated system called the Non-Filers Monitoring System (NMS) to track taxpayers who have not filed their income tax returns. Here’s a simplified breakdown of how it works:
1. Data Collection:
The ITD gathers information on taxpayers’ financial activities from various sources, including:
Annual Information Return (AIR)
Central Information Branch (CIB) data
Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) returns.
2. Analysis and Identification:
Using advanced algorithms, the ITD analyzes this data to identify individuals who should have filed income tax returns but haven’t.
3. Notice Issuance:
Based on the findings, the ITD issues notices to non-filers, notifying them of their potential tax liability.
These notices serve as reminders to taxpayers to fulfill their tax obligations and file their returns promptly.
Annual Information Return(AIR)
The Annual Information Return (AIR) serves as a vital tool for the Income Tax Department to monitor high-value transactions made by individuals and Hindu Undivided Families (HUFs). Let’s delve into its significance and the actions taken by the ITD for non-filers:
1. Reporting High-Value Transactions:
AIR requires specified entities to report various high-value transactions to the income tax department. These include cash deposits, credit card bills, mutual fund investments, purchase of immovable property, and more, surpassing specific thresholds.
2. Example Transactions Reported:
AIR-001: Cash deposits exceeding Rs. 10,00,000 in a savings bank account.
AIR-002: Credit card bills amounting to Rs. 2,00,000 or more.
AIR-003: Mutual fund investments totaling Rs. 2,00,000 or above, and so on.
3. Impact on Non-Filers:
For taxpayers who haven’t filed their income tax returns but have significant financial transactions reflected on the e-Compliance Portal, the ITD takes proactive measures:
Sending SMS alerts to remind them of their obligation to file returns.
Initiating queries to verify the information available on the e-Compliance Portal, ensuring accuracy and compliance.
Action to be taken for Income Tax Non-Filing Notice
If you’ve received a notice for non-filing of your income tax return via SMS, it’s essential to take prompt action. Here’s a straightforward guide on what to do:
1. File Income Tax Return or Submit Response:
a. Log in to your account on incometaxindiaefiling.gov.in. b. Navigate to Compliance > Compliance Portal. c. Click on e-Campaign. d. Under “e-Campaign – Non-Filing of Return,” select the relevant Financial Year. e. Choose “e-Campaign – Response on Filing of Income Tax Return” for the same Financial Year. f. From the dropdown menu, select your response and reason for non-filing. Specify the mode of filing. g. Provide the Date, Acknowledgement Number, and any Remarks. h. Click on Submit.
2. Confirm Information Provided:
a. Log in to your account on incometaxindiaefiling.gov.in. b. Visit Compliance > Compliance Portal. c. Click on e-Campaign. d. Select “e-Campaign – Non-Filing of Return” for the applicable Financial Year. e. Under “e-Campaign – Information Confirmation,” choose the same Financial Year. f. Click on the tab to view transactions and validate the information provided.
By following these steps diligently, you can respond to the non-filing notice efficiently and ensure compliance with income tax regulations. It’s crucial to stay proactive and address such notices promptly to avoid any potential penalties or further inquiries from the Income Tax Department.
Important Keyword: E-Compliance Portal, Income Tax, Income Tax Compliance, Accessing the Portal.
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Accessing the Portal
The Compliance Portal, administered by the Income Tax Department, serves as a specialized platform catering to various functions related to e-Verification, compliance issues, and capturing responses. It acts as a centralized hub for structured communication, fostering transparency and operational efficiency.
To access the Compliance Portal, follow these steps:
Option 1: Step 1: Directly visit the official website of the compliance portal.
Step 2: Locate and click on the Login button positioned at the top left corner to gain entry into the portal.
Once logged in, users can leverage the portal’s functionalities for addressing compliance-related matters, verifying information, and responding to queries as required.
Important Keyword: E-Verify, Income Tax Refund & Notices.
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Response on Additional Query Request
When the Income Tax Department (ITD) raises an additional query request on the compliance portal, taxpayers are required to respond promptly. These queries are typically based on previous responses submitted and verified by the department. Therefore, taxpayers must address any additional queries raised to ensure compliance.
The e-verification process of Income Tax Returns (ITRs) aims to determine whether individuals who have not yet filed their returns are liable to do so. The Compliance Portal serves as a vital tool for both taxpayers and the department in identifying cases of non-filing of returns. Consequently, taxpayers must submit responses to queries raised through this platform.
Steps to Submit a Response to Additional Query:
1. Log in to the compliance portal with valid credentials. Click on the e-Verification tab.
2. Click on “Click here for details”.
As seen below:
3. Click on any Identifier you wish to see the details for.
Therefore, you can choose as per the description.
4. Click on Submit/Re- Submit.
Therefore, you need to submit the response, from the detailed page that opens up.
5. Write your response in the response section.
Finally, upload all the necessary documents and click on Submit.
6. Your response to the additional query raised is now submitted.
The process is now complete.
By actively engaging with the Compliance Portal and promptly responding to queries, taxpayers can ensure adherence to tax regulations and contribute to a transparent and efficient tax system. This collaborative effort fosters mutual understanding between taxpayers and tax authorities, facilitating smoother compliance processes.
Important Keyword: Compliance Portal, e-verification.
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View Response History
Taxpayers now have the convenience of accessing their response history through the portal. This feature allows them to track and review all responses related to specific e-Verification issues under the Related Information section.
It serves as a comprehensive platform for managing e-verification issues and capturing responses. Employing a campaign management approach, it engages taxpayers through various channels such as emails, SMS, phone calls, notices, and letters. Taxpayers are prompted to visit the portal to submit responses against identified issues.
By leveraging the portal, taxpayers can efficiently address verification concerns and ensure compliance with tax regulations. This streamlined process enhances transparency and facilitates smoother communication between taxpayers and tax authorities.
Steps to view Response History on the Compliance Portal
1. Log in to the compliance portal with valid credentials
Click on the e-Verification tab
2. Go to the Verification Issue Details section:
Go to the specific information in the Relation Information section.
3. Click the View to view the response history
As seen below:
4. You will now be able to see a list of the history of responses submitted by the taxpayer.
Click on Download PDF to download the pdf of the submitted response(s).
