CA Chirag Chauhan

The Mission of Our Income Tax Department is “To promote Compliance with our direct tax laws, through caring taxpayer service and strict enforcement, and thus realize maximum resources for the Nation.”

With the Above mission in the mind, recently Income Tax department are sending Notice to various assesses who has not filed their Income tax Return and Seeking information as per AIR Filing by various Institution. Most of assesses are Receiving Email with subject as “Compliance – Income tax Return Filing”. This is with the help of improved monitoring due to stricter know-your-customer norms and online filing of returns, both of which have made data processing easier and faster with which escape can be easily monitored. So do not get shocked or surprised if you get a notice from the income tax department seeking details of a transaction or source/proof of some income and asking details.

The Reason of assessee receiving notice is because assesses has failed to file return inspite of having bank cash deposits worth Rs 10 lakh or more in a year, credit card purchases of Rs 2 lakh or more, mutual fund investments of Rs 2 lakh or more, or purchase of bonds and debentures worth Rs 5 lakh or more in a year. Besides, sale or purchase of property worth Rs 30 lakh or more also attracts attention of the tax department. Under the law, details of such transactions have be furnished by the entity with which you are doing the transaction. For example, if you have Rs 10 lakh or more in the savings account of a bank, the respective bank has to file an annual information return (AIR) with the department. Such tight monitoring means the taxman may send you a notice asking you to file a return. Also, if there is a sharp discrepancy between your earnings and spendings, the tax department may ask you to explain your sources of income.

If you want to know reason for which you have received notice you need to login to https://incometaxindiaefiling.gov.in. In the menu “Compliance”, select the “Related Information Summary” and know the reason why you have received the Notice.

How to deal with tax notices

First you need to understand why have you receive notice and for which year you have not filed your returns. Please login to https://incometaxindiaefiling.gov.in.

In case you have filed your all returns, Please update the details such as Mode of Filing (electronic Filed or Paper Filed), Date of filing return, Acknowledgment Number and Circle or Ward and City in case of Manual Filing.

In case you have not filed you return for particular assessment year, Please update the detials such as Return under preparation or Business has been closed or No taxable Income or Others. Also enter the remarks, if you select the option Others.

Further under the tab “Related Information Summary”  you need to select particular Information of AIR filing as “Information Relates”  should be either Self or Other PAN (specify the PAN) or Not Known or I need more Information.  Make sure that you reply correctly or there are chances of department asking for further clarification.

There are more than 40 Lakh Individual who has made cash deposit of more than 10 Lakh in saving account. The IT department has identified 23 lakh people, who have invested money, but have not filed returns to whom they will be sending out letters, asking those details of their tax returns.

From the annual information return (AIR), the I-T Intelligence and Criminal Investigation Directorate, at Delhi, has been routinely sending out computer-generated notices which are seen as harassment by many individuals like Senior Citizens and Women.

For any query you can write to Chirag@cachauhan.in . Before making any decisions do consult your Professional / tax advisor.  Author do not take any responsibility for misrepresentation or interpretation of act or rules. Neither the author nor the firm accepts any liability neither for the loss or damage of any kind arising out of information in this document nor for any action taken in reliance there on.

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41 responses to “Compliance – Income tax Return Filing- Why and how to reply ?”

  1. suni says:

    Dear Sir,
    I have received a letter from income tax department to submit the return for assessment year 2013-14. I am an NRE and I dont have any income in India. I am not sure why income tax department are saying to file the return and what basis they are saying this.
    I have checked my NRE and NRO account. I dont have any income but normally i have done transfers from NRE to NRO account.
    I spoke to the Auditor he said to submit the ITR form 1 declaring no income and upload the letter received from income tax and also he advised me to upload the account transactions for the year 2012-13( is the tax year Jan to DEC?) for the assessment year 2013-14 and asked me to upload the statement online in e-filing website.
    Please kindly help with the same. Is it right way of doing.
    Also I would like to get information from income tax department on what basis and what income they are saying this. How can I get this information, does e-filing ITR 1 and sending letter online will help me to get the information.
    I have called income tax department but no luck.

    Please kindly help.

    thanks
    Suni

    • Abhijeet Dattatray korade says:

      sir, I have received Notice from ITO For AY 2015-16 for non filling of income tax return. reason of notice is depositing cash more than 10 lacs in saving bank A/C. I am running small business of supplying agricultural product (corn) to Mumbai market. also I am having agricultural income.
      Please advise me what should I do.

  2. Rajendra E .Wakchaure says:

    I had already paid income tax though I received notice complience notice

  3. Rajendra E .Wakchaure says:

    I have received notice from tax department why? I had already paid income tax regularly.

  4. MARRI SURESH BABU says:

    I AM AN GOVT EMPLOYEE AND I HAVE TAKEN A HOMELOAN RS.1000000 AS INSTALLMENT FROM THE BANK. NOW I RECEIVED A NOTICE FROM THE IT DEPT STATING THAT YOUR TRANSACTION IS ABOVE 1000000 IN A FINANCIAL YEAR GIVE COMPLIANCE REPORT.
    WHAT OPTION I SHOULD CHOOSE IN COMPLIANCE REPORT?

  5. Ashish Gupta says:

    My father is doing small business just for the survival. He had some accumulated money around 5 lakhs which he had deposited and withdrawal and deposited many times in saving accounts and around 5 lakhs which i had given to him in FY 2014-2015. He had never filled any ITR or paid any tax. Actually, he was not aware of that.
    Now today he got notice from Tax department regarding non-filling of return.
    What should i do now?
    Please help me.
    For any further detail i can send all related documents.

  6. B K says:

    I have recd notice from e-sahyog asking me to provide on mismatch of info filed by third parties (banks for FD interest) and income not considered in ITR for FY 2015-16. What should I do?

  7. B K says:

    I have recd a mail from e-sahyog before 2 days for AY 2015-16. Its asking me to respond on information updated by my banks with which I have FDs and earned interest but not included in my IT return. What should I do?

  8. HARESH says:

    i reed notice for 13-14 year how to reply and file return i am 63 year age . my income from sb a/c is
    155000 , fd interest is 18000 share in AOP 196000
    OTHER INCOME 25000.INTEREST ON POST SAVING 2000
    I PAID100000 PPF A/C LIC 21000 HOWTO FILE SALAR FORM IF ANY REFUND TO ME
    HOPER YOU WILL DO THE NEEDFUL
    THANKING YOU

  9. Amit Saxena says:

    I have received a letter from Income tax regarding non filling of return.I was liable to file a return as i have income more than Rs. 2 lac in financial year 2013-14 and also TDS also deduct from my salary.

    As I computed my Income, no tax liability further after taking TDS credit.

    Now how can i handle my case.I dont want to pay penalty Rs.5000 for non filling of return.

  10. neeru kapoor says:

    Dear Sir,

    I have received a notice from income tax department stating that I have purchased and sold shares. I have my TDS certificate from my salary account and no transaction has been made throgh that,all the transaction in my bank iare made by me by my little investment on shares then what should I choose an option in compliances. This is my own investment apart from my salary.

  11. Ehjaz Savaijiwala says:

    No thats not taxable just reply notice to department in case of any query email me your notice at ca.ehjaz@gmail.com

  12. Yogesh Arora says:

    Dear Sir,

    I have a question i have recieved a notice from the income tax department stating my credit card spend is above rs. 2.0 lakhs. i wish to inform you i travel for my office work and later my companu reimbursed me the amount that raise the credit card spend above 2.0 lakhs that is also taxable.

  13. Dhaval Kantrodiya says:

    Dear sir,
    I have received compliance & Related information notice online from IT Department, because i haven’t file my ITR for FY2012-13 AY 2013-14, in which i have TDS Refund of Rs.18200 U/s 194C, can i file my return now? it create any problem? or how can i solve that problem?

  14. subhronil ganguly says:

    I have not filed my return for the year 2014-15 as my income was under the ceiling of Rs. 2,50,000 for FY 2014-15. My salary covers almost Rs. 1,42,000 and interest over investment is about Rs. 60,000 that means overall Rs. 202000 for the FY 2014-15 . I have a LIC of Rs. 11320 for each year covers for 20 years.

    In 2013-14 my total income was Rs. 2,33,473.

    I have few FDs and which provide me interest for livelihood. One FD has matured during the FY 2014-15 about RS 1,00,000 on 28/10/2015. I have Rs. 2,50,000 in my savings a/c. I have added Rs. 1,00,000 (The matured FD)+ 2,00,000 (from my liquid savings) and again invested in FD of Rs. 3,00,000 in Bank on 31/10/2014.

    The the IT department asked me compliance about non filing the tax. When I reply them about my low income level than savings they are asking for CIB-403 i.e Time Deposit exceeding Rs. 2,00,000/- with a Banking Company. Now what should I comply them according to Non-filers Monitoring System (NMS) guideline.

    Kindly advice me about my next steps.

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