TogglIcon
HOMELEARNABOUTGET STARTED

Voluntary Compliance: One more chance, before you get an IT Notice


The Income Tax Department will conduct an 11 days ‘e-campaign’ to increase voluntary compliance for Financial Year 2018-19 so that taxpayers do not face any notice or scrutiny.
Starting today 20th July to 31st July 2020, the taxman will reach out to taxpayers who have not filed or incorrectly filed their Income Tax Return.

Whom will ITD reach out to?

The Income Tax department will send out emails and SMSs to taxpayers that have made high-value transactions between 1st April 2018 to 31st March 2019 but did not report or misreport them in their tax returns.

The ITD is using data analytics to filter out high-value financial transactions such as:

  • Cash deposits in Banks
  • Purchase or sale of immovable property like land, building, etc.
  • Financial Market transactions like trading in:
    • Securities
    • Derivatives
    • Commodities
    • Mutual Funds, etc.
  • Purchase or sale of Jewellery

But how does the taxman know all of this?

The Income Tax Department gets details of the taxpayer’s financial transactions from various sources like:

  • Statement of Financial Transactions (SFT) Report
  • Details of Tax Deduction at Sources (TDS) & Tax Collection at Source (TCS) from Form 26AS
  • Foreign Remittance
  • Annual Information Reports (AIR) filed by institutes like
    • Banks
    • Brokerages
    • Asset Management Companies
  • Information relating to GST
  • Information relating to exports and imports

Earlier this month on 8th July 2020, the CBDT (the governing body for Income Tax) and Securities Exchange Board of India (SEBI), the capital market regulator, have joined hands for exchange of information and data.

CBDT partners with SEBI to curb tax evasion
CBDT enters into partnership with SEBI for data exchange. ITD can access trading transactions of taxpayer & issue notice to tax evaders
Read More
CBDT partners with SEBI to curb tax evasion
CBDT enters into partnership with SEBI for data exchange. ITD can access trading transactions of taxpayer & issue notice to tax evaders
Read More

Using data analytics, the Central Board of Direct Taxes (CBDT) was able to identify taxpayers with high-value transactions who have not filed or incorrectly reported them in their returns for FY 2018-19.

Can I find high value transactions?

The taxman is working on the lines to make tax compliance smooth for all taxpayers by making information less scattered.

One of the ways is through the new avatar of Form 26AS. From FY 2020-21 onwards, Form 26AS will include details of the Statement of Financial Transactions (SFT). Meaning, taxpayers can now see transaction like:

  • Property & Share Transaction Details
  • Status of Proceedings with ITD
  • Status of Income Tax refund/demand

The taxpayer can use their e-compliance portal to view high-value or significant transactions.

How to access Compliance portal?
Taxpayers can access the Compliance Portal to submit responses to the Income Tax Department and also to view the issues raised by the ITD.
Read More
How to access Compliance portal?
Taxpayers can access the Compliance Portal to submit responses to the Income Tax Department and also to view the issues raised by the ITD.
Read More

The taxman will reach out via emails and SMS under this 11-day e-campaign if there is any discrepancy in the ITR filed by taxpayers & high-value transaction details with the ITD. The aim is to increase voluntary compliance and avoid notices and scrutiny.

Wait… so this is not a notice?

The ITD promotes Voluntary compliance under this 11 days e-campaign, so taxpayers do not have to face scrutiny or notice from the tax department.

For FY 2018-19, the taxpayers have the last few days to validate and verify their financial transaction information with the ITD under this e-campaign.

It’s a great opportunity for taxpayers to participate in the e-campaign for their ease and benefit, says the CBDT.

What if you get such communication from the ITD?

If you receive such email or SMS from the Income Tax department, you must respond within the prescribed time. After which you may receive a tax notice or face scrutiny from the ITD.

Being an e-campaign, you can easily file an online response by selecting any of the following from your income tax e-filing account:

  • Information is correct
  • Information is not fully correct
  • Information related to other people/year
  • Information is duplicate/included in other displayed information
  • Information is denied.

If need be you can also file a belated / revised ITR for FY 2018-19 before 31st July 2020.

Not sure how to respond? Talk to one of our experts at Quicko.

Tweet Us--Like Us--Join Us

1 Likes

Share
facebook twitter

k r damodaran says:

2020-07-20 13:07:23

The time given for revision of 2018-2019 f/y return is up to 31st July, 2020, which means only 11 days left. This date needs to be pushed back as many cities are under lock down, not to speak of the present whereabouts of the tax practitioners. It is well that, armed with new income/expenditure data, the tax evaders are being confronted, to come clean. I am of the view that the tax payers should be flabbergasted in the relevant assessment year, because we all heave a sigh after each assessment. IT is a dry tax, and it is common for Indians to conceal part of the income, which of course is illegal. In my view we can safely presume that all the 6 crore return filers have concealed at least petty amounts. The past should not haunt you, me and nobody. After all we are only giving and not taking anything. After the Russian Revolution, the rulers made up their minds that the people have gold and silver hidden in their houses, and started one of the most inhuman manhunt, which should not be repeated in any country under any pretext. By the way I am certainly not one of the men you are trying to squeeze!

Reply

Post a comment

Close Bitnami banner
Bitnami