By CA Ankit Gulgulia (Jain)
The SMS has caused panic among taxpayers as the deadline to reply is very shorthand as 31st March is the last date to file a revised return. Taxpayers effectively had two days to reply or file revised returns. It will be difficult for people to do it without professional help.”
Most of these queries are related to the interest on fixed deposits (FD), saving accounts and debentures or bonds
The SMS stated, “Attention xxxxxxxxxx (XXXXX5362X),The Income Tax Department has identified high value information which does not appear to be in line with the Income Tax Return filed for Assessment Year 2020-21 (relating to FY 2019-20). Please revise ITR / submit online response under e-Campaign tab on Compliance Portal (CP). Access CP by logging into the e-filing portal and clicking on ‘Compliance Portal’ link under ‘My Account’ or ‘Compliance’ tab – ITD.”
Banks and other financial institutions such as mutual funds, companies etc are required to send information related to the transactions exceeding a certain threshold to the tax department.
In case of savings bank account, interest of up to Rs10,000 from all bank accounts of a taxpayer is exempt from tax but taxpayers are required to disclose it. In case they haven’t they may get a notice from the department.
As banks were closed on Holi, people are facing difficulty getting data from banks. Also, there is no public dealing by banks on 31 March. This may lead to problems for taxpayers in replying in case there is a mismatch, and they need some information from their banks.
Nothing to worry about this message. This is similar to Marketing campaign. The Tax department is sending email/sms to the taxpayers that they have received information from various sources about High Value transactions made by you.
The objective of the campaign is to facilitate taxpayers to validate the information available with the tax department, pay applicable taxes and file income tax returns.
The above email/message is sent to prompt the taxpayers that ‘Look my dear friend, I have the details of transactions made by you, please pay tax and file income tax return Tax before the due date of filing return else face huge consequences of paying tax along with interest and penalty etc at later stage.’
Procedure to submit reply on Income e filing compliance portal
Visit the compliance portal, submit an online response by selecting any of the options namely Information is correct, Information is not fully correct, Information related to other Person/ Year, Information is duplicate/ included in other displayed information and Information is denied. If Information is correct, file income tax return after paying due taxes and in case you are not liable to file return, submit an online response under ‘Response on non-filing of return’ on Compliance Portal. In case if you have already filed income tax return but not declared correct tax liability, pay due taxes and file revised return.
What happens if you do not file a return or submit a response?
If you are liable to pay tax and not file return by the due date, you can’t file return thereafter and proceedings under the Income Tax Act, 1961, may be initiated to determine your income and tax liability. If you get assessment notice, you will end up paying interest and penalty in addition to tax liability.
What is the source of information for e-Campaign?
Under this e-campaign the Income Tax Department is sending email/sms to identified taxpayers to verify their financial transactions related information received by the I-T department from various sources such as Statement of Financial Transactions (SFT), Tax Deduction at Source (TDS), Tax Collection at Source (TCS), Foreign Remittances (Form 15CC) etc. The department has collected information related to GST, exports, imports and transactions in securities, derivatives, commodities and mutual funds under information triangulation set up.
How can taxpayers view the submitted response on each Information?
Visit Compliance Portal at https://compliance.insight.gov.in or Login to the e-filing portal by using the URL https://incometaxindiaefiling.gov.in and Click on ‘Compliance Portal’ link available in “My Account” or “Compliance” tab. After successful login, click on ‘e-Campaign’ Tab available at home page of Compliance Portal to view Information Summary screen. Click on “Financial Year” under Significant Transactions/Non- Filing of Return/High Risk Transactions option (Whichever is applicable). Click on ‘Financial Year’ available under ‘e-Campaign–Information Confirmation’. (Applicable for non-filing of return). Click on the “>” button to view information in detail. Click on the “View Response” button under Information detail. A Pop-up window will appear displaying the details of the response submitted by the taxpayer.
CA, CWM (AAFM-US), CBV, CIFRS, R-ID, B.COM (H), RV* (IBBI)
He is Fellow Chartered Accountant with more than 14 Years of Experience & Qualified Chartered Wealth Manager from AAFM (USA) and Registered Independent Director with IICA (MCA). He has been Published in several media interviews and articles with esteemed forums like Zee News, NDTV India, Hindustan Times, ET, TIOL, Taxmann, Taxguru, Caclubindia. He Can be reached at ankit@gravita.in
He Specialises in Virtual CFO Services. He is Also assists Startups, SME’s & Corporates to Secure Funding and Handholds them through the Routine Business complexities.
