Learn about the recent communication from the Income Tax Department regarding high-value transactions for previous and current financial years. Understand how to respond to the Annual Information Statement (AIS) and the consequences of not providing a timely reply.
Have you received Email or SMS from the Department for High Value Transactions for earlier years i.e. for FY 2020-21 and FY 2021-22??
The Income Tax Department on 01/11/2021 has launched Annual Information Statement (AIS) which is similar to Form 26AS which provides details of all the financial transactions carried out by the assesses during the financial year (FY) i.e. It contains all the information relating to your income and assets.
As you are aware, the income tax department has started sending Emails and SMS to several assesses for FY 2020-21 and FY 2021-22 for High Value transactions entered by them in that years and requesting them to submit an online response against the information reported in the AIS under e-Campaign tab on Compliance Portal.
However, in order to provide online response, you have to first download and analyze the information reported in AIS. After that you will need to verify the same with the Income Tax Return filed for those years.
1. If information reflecting in the AIS is correct and is matching with the ITR filed, you can provide item wise responses on the portal stating that information is correct.
2. If information reflecting in the AIS is correct and but you forgot to include that in the ITR, provide item wise responses on the portal stating that information is correct and file the Updated ITR as per Section 139(8A) of Income Tax Act, 1961. To know more about the same kindly, refer my below article.
Article Name: One-time Opportunity to submit ITR for FY 2019-20 & FY 2020-21
3. However, if the information reflected in the AIS is not correct, you have to provide item wise responses with the reason that the same is incorrect e.g., if you have dividend received from 50 companies, response will be required against all 50 entries if the information is correct or incorrect.
Hence, the entire exercise right from the start to an end will be a time consuming as each entry has to be traced in your bank and ITR and responded.
Consequences for not giving reply to AIS Information:
If you have not provided a timely response to the information reflecting in AIS, they will process the return based on the details/information available with them and if your income tax return is already processed by the department then they can initiate the assessment proceedings in case of any major difference between the data reflected in AIS and ITR filed by way of a scrutiny assessment.
Have you received SMS or Email from the Department for High Value Transactions for FY 2022-23
These days, the Income Tax Department has begun sending emails and SMS to a large number of assesses based on a random filtration relating to High Value Transactions entered in FY 2022–23 even before the end of the financial year.
Many of the assesses who received these emails and SMS are in tension. But there’s no need to worry, they merely sent these emails and SMS to verify the accuracy of the data acquired through the various sources under SFT. So, all you have to do is submit an online response to the information reported in the AIS via the e-Campaign option under Compliance Portal. There is no deadline for responding. It is, nonetheless, preferable to respond as soon as possible.
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