Non-filers Monitoring System (NMS)- Step by Step Guide- Income Tax Department issue notices to non-filer of Income Tax Returns from time to time and Taxpayer needs to submit his reply to such notices. Department has enabled a facility by which taxpayer can submit his response online to such notices. In this article we discussed step-by step the procedure to file response to notice for non-filing of Income Tax Return

1. Overview:

The Non-filers Monitoring System (NMS) is a pilot project to prioritise action on non-filers with potential tax liabilities. Data analysis was carried out to identify non-filers about whom specific information was available in various sources such as Annual Information Return (AIR), Centralised Information Branch (CIB), TDS/TCS Statement etc. The identified non-filers are informed by SMS, e-mails and letters in batches.

2. How to view information and submit response

Taxpayers are required to submit the response on the e-filing website following the steps below:

Step 1: Login to e-filing portalLogin to e-filing portal at http://incometaxindiaefiling.gov.in/ and click on “Compliance Tab”.
Step 2: View Non-filers informationNon-filers Information and Information summary can be viewed under Compliance tab.
Step 3: Submit online responseSubmit online response (Follow Step by Step Guide to submit response of non-filing of IT return).

The taxpayer just needs to visit the e-filing website and log in with their user-ID and password for the e-filing portal. In case if the taxpayer is not already registered, it may easily get registered. The taxpayer will be provided the information about the third party information received by the ITD.

3. How to Login to e-filing portal

i. Go to e-filing portal at https://incometaxindiaefilling.gov.in

ii. If already registered on the portal , click on Login Here” to login to e-filing portal

iii. If not already registered on e-filing portal. Click on “Register Yoursef”

Login to e-filing portal

4. How to access “Compliance” option

i. On dashboard, you will see a tab of “Compliance”. Click on the same.

Figure 2: Compliance Module

Compliance

ii. Click on “View and Submit Compliance” or “View my submission” link.

View and Submit Compliance: This may be selected when taxpayer wants to freshly enter the response.

View my Submission: This link will allow taxpayer to view the response which has been previously entered. The user can take the print out of previously generated response for their record.

Figure 3: Submit Details

View and Submit Compliance5. How to submit response

5.1. “Filing of Income Tax return” tab

In the ‘View and Submit Compliance’ tab, screen shown below will appear. The User need to fill in details in the tab “Filing of Income Tax Return”

Figure 4: Filing of Income Tax Return Tab

Figure 4- Filing of Income Tax Return TabThe taxpayer will be able to view the details of the assessment years for which the return has not been filed and for which the third party information has been received by the ITD. The taxpayer can choose one of the following response options:

i. ITR has been filed

ii. ITR has not been filed

If the taxpayer chooses the option that ITR has been filed then it need to provide the mode of filing the ITR (paper or e-file), date of filing the ITR and the acknowledgement number. In case the ITR is e-filed, the status will be automatically updated.

If the taxpayer chooses the option that it has not filed the ITR then it needs to choose one of the following options:

i. Return under preparation

ii. Business has been closed

iii. No taxable income

iv. Others

In case if the taxpayer chooses the option “others” then he has to mandatorily submit the remarks. The relevant screen shots are below:

Figure 5: Submitting response

Figure 5- Submitting responseFigure 6: Providing reason

Figure 6- Providing reason5.2. “Related Information Summary” tab

Different third party information received in case of taxpayers is shown separately. The taxpayer is required to choose one of the following options:

i. Self-Investment/ expenditure is out of exempt income: This option is to be selected if the third party information relate to investment/expenditure which belongs to the taxpayer and the same is out of income exempt from tax under Income-tax Act, 1961.

ii. Self-Investment/expenditure is out of accumulated savings: This option is to be selected if the third party information relate to investment/expenditure which belongs to the taxpayer and the same is out of accumulated savings.

iii. Self-Investment/expenditure is out of gifts/ loans from others: This option is to be selected if the third party information relate to investment/expenditure which belongs to the taxpayer and the same is out of gifts/loans from others.

iv. Self-Investment/ expenditure is out of foreign income: This option is to be selected if the third party information relate to investment/expenditure which belongs to the taxpayer and the same is out of foreign income.

v. Self-Income from transaction is exempt: This option is to be selected if the third party information relate to income/receipts which belongs to the taxpayer and the same is exempt under Income-tax Act, 1961.

vi. Self-Income from transaction is below taxable limit: This option is to be selected if the third party information relate to income/receipts which belongs to the taxpayer and the taxable income there from is below taxable limit under Income-tax Act, 1961.

vii. Self-Income from transaction relate to different AY: This option is to be selected if the third party information relate to income/receipts which belongs to the taxpayer and the same is taxable in a different year as per the provisions of the Income-tax Act, 1961.

viii. Self-Not Known: This option is to be selected if the third party information relate to income/receipts which belongs to the taxpayer and there is any other explanation.

ix. Other PAN: This option is to be selected if the third party information relate to another taxpayer. In this case, the PAN of such other taxpayer is to be mandatorily provided.

x. Not Known: This option is to be selected if the taxpayer has no information about the third party information.

xi. I need more information: This option is to be selected if the taxpayer knows about the third party information but needs more information to submit response.

The relevant screen shots are given below:

Figure 7: Related Information Summary Tab

Figure 7- Related Information Summary TabFigure 8: Providing information

Figure 8- Providing information5.3. Submission of response

“Submit” button will allow user to submit the response, after submission, taxpayer can take a printout of the submitted response for their own record.

Figure 9: Submission status

Figure 9- Submission status

5.4. Keeping record of submission

The taxpayer can take a printout of the submitted response for record.

Figure 10: Sample Response PDF

Figure 10- Sample Response PDF6. Processing of Response

The responses submitted online by the taxpayers will be verified by the ITD and if found satisfactory, the case will be closed. The taxpayer can check the updated status by logging in to the e-filing portal.

In case the taxpayer does not file Income Tax return, the information will be pushed to the field formation for further action.

Posted Under

Category : Income Tax (20862)
Type : Articles (10799) Featured (3634)
  • prakash

    this is very informative to me and also others

  • Purushottam Biyani

    What to do in case of notice came for the period for which return can not be filed now due to time barring limit?

  • GALA ASHWIN

    Very Good Article.

  • CA. Subhash Chandra Podder

    excellent