Updated ITR filing deadline approaching! Some individuals receiving emails from income tax division; here’s why | Business

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Updated ITR deadline: As the deadline for updating Income Tax Returns (ITRs) for the fiscal 12 months 2020-21 attracts close to, many individuals have lately obtained emails from the Income Tax Department relating to important transactions flagged of their Annual Information Statement (AIS). Here’s what it’s good to find out about these communications and the way to handle them:

Who receives these communications?

As per an ET report, individuals are receiving these communications from the Income Tax Department primarily based on discrepancies or important transactions detected of their monetary data.
The Income Tax Department contacts taxpayers by means of the AIS/Compliance Portal to assemble suggestions on info obtained from totally different sources. Taxpayers might have to reply or clarify queries raised within the e-Campaign part to finish the method.

What transactions are highlighted?

The e-Campaigns initiated by the Income Tax Department could give attention to numerous points, together with non-filing of returns or important/high-value transactions carried out by the taxpayer through the fiscal 12 months.

Understanding the communication

Naveen Wadhwa, VP at Taxmann, explains that the messages seen within the AIS/Compliance Portal’s e-Campaign part point out that the tax division has found info inconsistent with the income reported within the taxpayer’s ITR.
ALSO READ | Offline ITR-1, 4 varieties FY 2023-24: Income tax division releases new varieties for AY 2024-25; know the small print right here

Deadline for up to date returns

Eligible taxpayers can file an up to date Income Tax Return to right errors or omissions of their beforehand submitted returns. This could end in extra tax legal responsibility upon recalculating income. The deadline to file an up to date return for the fiscal 12 months 2020-21 (Assessment Year 2021-22) is March 31, 2024.

Responding to the communication

Chartered accountant Mihir Tanna, affiliate director-direct tax at S.Okay Patodia LLP, was quoted as saying, “Since the deadline to file ITR-U is near, the tax department is sending emails pertaining to FY 2020-21 to some of the taxpayers stating that their case has been selected for e-Verification under e-Verification scheme 2021 visible under the tab “e-Campaign” after clicking “Notices” tab of the Compliance Portal.” He additional said that emails are despatched to taxpayers who’ve both not filed their ITR or whose disclosed info within the filed ITR doesn’t match with the knowledge obtainable with the Department.

Accessing the communication

On the ITR e-filing portal, go to the pending motion tab and choose “Compliance Portal”. Then, navigate to the e-Campaign tab, which is able to take you to a different web page. Here, you will discover a checklist of transactions flagged by the tax division.
By clicking on every flagged transaction, taxpayers can view extra particulars in regards to the particular transaction. Transactions marked with an “e” are these that will not have to be disclosed within the ITR in keeping with the income tax system, sometimes obtained after current years’ ITR processing.
The offered screenshot illustrates a communication obtained from the income tax division, accessible by means of the AIS/Compliance Portal underneath the e-Campaign tab.

Source: ET quoted Punit Agarwal, founder, KoinX
In the screenshot, clicking on the transaction class listed within the e-Campaign checklist results in a brand new web page displaying particular info classes marked with “e”, indicating communication despatched by the tax division.

koinx2

Source: ET quoted Punit Agarwal, founder, KoinX

Alternate technique to entry Compliance Portal

To entry the Compliance portal, log in to the e-filing ITR portal and go to the Pending Action tab. From there, click on on “Compliance Portal” after which choose the Notices button.

mihir-tanna

Source: Mihir Tanna, affiliate director, S.Okay Patodia LLP as quoted by ET
Tanna explains {that a} shopper obtained a communication relating to the acquisition of a home property within the fiscal 12 months 2020-21. However, this explicit communication is not seen on the AIS/Compliance Portal (https://ais.insight.gov.in/complianceportal) however might be discovered underneath the “Notices” tab of the compliance portal (https://compliance.insight.gov.in/compliance/). Although each portals are named Compliance Portal, they serve barely totally different functions. The AIS Compliance portal shows newer circumstances, whereas the Compliance Portal reveals circumstances from older evaluation years, in keeping with Tanna.
ALSO READ | Income Tax Returns 2023-24: CBDT notifies ITR-2 and ITR-3; key particulars taxpayers must now present
The offered screenshot depicts a discover for the fiscal 12 months 2020-21 underneath the e-Campaign tab of the Compliance portal.

mihir-tanna2

Source: Mihir Tanna, affiliate director, S.Okay Patodia LLP as quoted by ET
Below is the screenshot of the discover obtained by one in every of Tanna’s purchasers relating to a property buy. This discover is simply seen on the Compliance portal, not on the AIS/Compliance Portal.

mihir-tanna3

Source: Mihir Tanna, affiliate director, S.Okay Patodia LLP as quoted by ET

Why are these communications despatched?

Tax consultants counsel that these communications are despatched to reinforce compliance and validate monetary transactions. Punit Agarwal, the founding father of KoinX, a specialised tax filing help platform, explains that the intention of those communications is to confirm monetary transactions primarily based on info obtained by the tax division.
Agarwal additional elaborates, stating that the tax division scrutinises information from numerous sources, together with TCS returns, TDS returns, specified monetary transactions (SFT) returns, and different related channels. Additionally, the division systematically collects and assesses information regarding items and companies tax (GST), import/export actions, in addition to transactions involving securities, derivatives, commodities, and mutual funds. This is achieved by means of leveraging info provided by various third-party entities.

Consequences of non-compliance

According to Wadhwa, when confronted with such conditions, a taxpayer has two selections: they will both present suggestions if the knowledge offered is inaccurate or replace their ITR if there is a deadline for doing so.
“If the taxpayer does not respond to this communication or the response is not satisfactory as per the tax department’s available information, then the tax department can start scrutiny proceedings or assessment for the escaped income if the evidence is substantial,” Wadhwa additional added. Regardless of the tax division’s resolution, whether or not it’s scrutiny or evaluation, an income tax discover underneath the desired sections can be issued.


Nilesh Desai
Nilesh Desaihttps://www.TheNileshDesai.com
The Hindu Patrika is founded in 2016 by Mr. Nilesh Desai. This website is providing news and information mainly related to Hinduism. We appreciate if you send News, information or suggestion.

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