I-T dept may reach out to you if you did a high-value transaction in FY19 and haven’t filed tax return
This campaign is started to promote voluntary compliance so that the taxpayers who haven’t filed return or have filed incorrect return, don’t face any notice or scrutiny, said the tax department
The tax department said in a notification issued on Saturday that it will start an 11-day e-campaign starting from 20 July to reach out to those taxpayers who have done a high-value transaction in the financial year (FY) 2018-19 but have not filed the income tax return. Also, those who have filed the tax return but the high-value transaction conducted by them is not in line with the tax return filed, they will be given an option to rectify their tax returns. The 11-day campaign will end on 31 July, 2020, the last date for filing the income tax return for FY 2018-19.
This campaign is started to promote voluntary compliance so that the taxpayers who haven’t filed return or have filed incorrect return, don’t face any notice or scrutiny, said the tax department.
Using data analytics, the tax department has processed the data received from various sources such as a statement of financial transactions (SFT) filed by various agencies such as banks, mutual funds etc, tax deduction at source (TDS), tax collection at source (TCS), foreign remittances (Form 15CC) statements etc to gather information about taxpayers who are liable to file tax returns but haven’t filed.
The tax department will reach out to these taxpayers through SMS or email during the 11 days campaign. The taxpayers will be able to access the information about the high-value transaction on the income tax portal using their login ID that is their PAN number and registered password. The taxpayers will also be able to submit a response online to the query of the tax department on the portal.
“Taxpayer will also be able to submit online response by selecting among any of these options: (i) Information is correct, (ii) Information is not fully correct, (iii) Information related to other people/year, (iv) Information is duplicate/included in other displayed information, and (v) Information is denied. There would be no need to visit any Income Tax office, as the response has to be submitted online," said the CBDT notification.
After submitting the response the taxpayer can file or rectify the tax return.
"The tax department is giving chance to those who are liable to file tax returns as they have a gross taxable income before deductions of more than ₹2.5 lakh or have done a high-value transaction in the relevant financial year and have not filed tax return or there is an error in the return filed or not yet verified. After this date, they may get a tax notice or face penalty for non-filing tax returns or evading taxes, if due," said Sudhir Kaushik, CEO, Taxspanner.com, a tax return filing portal.
If you receive such sms or email, do respond to the tax department's query within the prescribed time.