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.

Read Other Articles from CA Chirag Chauhan

More Under Income Tax

Posted Under

Category : Income Tax (25356)
Type : Articles (14847) Featured (4126)
Tags : CA Chirag Chauhan (15) Income Tax Return (376) ITR (552)

40 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

  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.

  15. Chaitrali Kulkarni says:

    I received notice from income tax for filing income return for AY 2013-14
    After submitting compliance report do I need to file Income Tax Return if my total income is below taxable limit.
    Thank You

    Reply

  16. shree says:

    i recd notice from income tax for not filing returns for ass year 2013-14
    i replied through compliance but anything else i suppose to do
    thnks

  17. Deepak says:

    My income from part time work is around 15k per month only.
    Actually i got a credit card while i got a job few years back.
    Which i quit long long ago. I have never paid tax nor i file return as my income is not taxable. I actually use my card a lot and have used it for more than 2L in a year, i paid for family and friends under various circumstances and got the cash from them. For this reason i have received a compliance notice. Please help me and tell me what to do now.

  18. akhilesh says:

    Hi Mr Chirag,
    My name is akhilesh, my grandmother received notice from Income Tax for non filling of ITR for AY 13-14 (FY12-13).

    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 2012-13.

    what should i do…pze reply

  19. pardeep says:

    my retail medical shop turnover sale 500000 and other source income gross receipt exceed 150000. what i need to maintain account books

  20. Rohit says:

    I am a NRI.I had filed a nil return for A.Y 15-16.However,I did not file nil returns for the A.Y 14-15 and 13-14.I am unable to file the return now for those two years.I want your advice in this case.
    Thanks in advance.

  21. akash vajpai says:

    if you have any query related to income tax you can mail me at akashvajpai24@gmail.com. Answer will be given in 24 hours.

  22. Deva Singh says:

    2015-16 current year itr not submit form not download can we submit mannual form if yes so please send me ITR-4 form

  23. VIJENDER SINGH says:

    sir i recieved a compliance notice from delhi for non filling return for AY 11-12, but the section 142, what to do now

  24. Amar says:

    Hi Mr Chirag,

    My name is Amar, I have received notice from Income Tax for non filling of ITR for AY 13-14 (FY12-13).

    1) I was working in Jordan Country from 02-01-2010 to 04-03-2013. and during this period I have visited to India
    from 11/02/11 to 23/03/2011 and 07/03/2012 to 14/04/2012 and finally come back to India on 04/03/2013.

    2) In FY 12-13 Bank has deducted TDS Rs. 2800/- agst Interest paid Rs. 28000/-

    Please advice I should file ITR for FY 12-13 or I should reply to Income tax In FY 12-13 my status was NR and All income I have earned from out of India.

    Please advice

  25. syed jaweed hussain says:

    I got complian from income office Iam teacher incomtexpayer but idod’t know about crited card transition .one year transition above 200000 sum tradition in Emi sum policy 50000p.y.Know iam in loan 400000 because icou
    ntpay this amount iam pay only minimum amount know how to do plese send reply thanking you

  26. Vikramaditya says:

    Sir,
    For Assessment year 2011-12 salaried employees having income uptp Rs 5 lakhs were exempted from filing the returns.

  27. Nanda says:

    “I got complaint from service tax for investigation and we have exempted service tax for export service and we are supplying to USA , please let me how to show nil return and what to reply to Service Tax

  28. Chriag says:

    @ KUSHAL PRASAD PANDEY you can file it Online. Mail me detials of yours at chirag@cachauhan.in

  29. KUSHAL PRASAD PANDEY says:

    SIR,
    I receive COMPLIANCE from ITR then i fill my COMPLIANCE
    i m not fill 2011-12 and 2012-13
    after filling COMPLIANCE RESPONSE what can i do
    because i can’t fill 2011-12 and 2012-13 e-fill from

  30. nagesh kini says:

    I’m a 70+ non-practicing CA.
    I feel the IT dept. is barking up the wrong tree by over reacting and putting out huge numbers of lakhs of notices shot our to all kinds of senior citizens, widows, pensioners, women with no taxable income falling under Sec.139 of the IT Act.
    Some of them are asked whether they have indulged in commodity trading when they don’t know ABC of finance beyond bank FDs.
    The notices only harass exempt assesses.
    Since all instruments necessarily involve disclosure of PAN the INCOME TAX CRIMINAL INVESTIGATION DEPT could have as well computer cross matched the investment with the PAN to ascertain the tax status.
    The time spent by the tax babus could as well be put to effective useful purpose to collect the crores of TDS, ST, Service Taxes collected and not deposited for years by the likes of Kingfisher instead of allowing them to run into multiples of some more crores to be virtually written off!.

  31. subhendu kumar says:

    The department is sending letters saying that “you have not filed returns for——- and ——-years though there is information that Tax has been deducted——”
    An assessee can not file returns for the years mentioned in the said letters since those are already time-barred.For example I received a letter stating that Returns for AY 2011-12 and 12-13 have not been filed. The letter was issued by the department on 31.03.2014. How an assessee will file a return for those years ? The department should send it sufficient time ahead to give a chance to a Non-filer to file his return of income or else it should be referred to the jurisdictional officer to issue statutory notice for filling of returns.
    Most of the cases where letters have been received, it is seen that those are salary class people from whom proper Tax has been deducted at source by their employer. In such cases department does not earn any additional revenue but there will be only additional paper work.

  32. K.PREM SAGAR says:

    SIR,
    I FULLY AGREE WITH THE SENTIMENTS EXPRESSED BY SHRI K.MUKAMBIKA ON 17TH APRIL 2014, AS THE OTHER GRADUATES ARE NOT EXPECTED TO PRACTICE AS TAX PROFESSIONALS. WITH THE INCREASING NUMBER OF NEW COMING UP EVERY YEAR, IT HAS BECOME DIFFICULT FOR THE TAX PAYERS TO TAKE PROFESSIONAL HELP IN FILING THE RETURNS AND REDRESSING THEIR GRIEVANCES. HENCE, ALL GRADUATES SHOULD BE ALLOWED TO PRACTICE AND TAX PRACTITIONERS’ CERTIFICATES (AUTHORISED ITP)TO BE ISSUED TO NEEDY PERSONS, AS THE BANK AUTHORITIES ARE EMPHASISING ON SEAL OF THE TAX PROFESSIONALS WHO PREPARED AND SUBMITTED THE RETURNS OF INCOME. THIS WILL GO A LONG WAY IN HELPING THE UNEMPLOYED YOUTH AND ALSO PROVIDING THEM WITH FINANCIAL AID. DEPARTMENT CAN RESTRICT ON COLLECTING THE PROFESSIONAL FEES ETC. I EXPECT THE DEPARTMENT TO PLEASE LOOK INTO THE MATTER AND TAKE REMEDIAL ACTION TO PREVENT THE HARDSHIPS FACED BY THE TAX PAYERS IN FILING THEIR RETURNS AND SENDING COMPLIANCE REPORTS TO BE SUBMITTED TO THE NEW DELHI.
    THANKS
    K.PREM SAGAR

  33. Avinash Rawani says:

    Nice updation

  34. K.MUKAMBIKA says:

    IN VIEW OF 46 PLUS CA CERTIFICATES ON DATE IN INCOME-TAX ACT NEW NON-CA TAX PROFESSIONALS ARE NOT ENTERING TAX PROFESSION SINCE INSERTION OF TAX AUDIT CERTIFICATES U/S 44AB IN 1984. ON DATE THERE ARE ONLY 65,470 PRACTICING CAS THROUGH OUT INDIA. IN ANOTHER 10 YEARS NON-CAS WHO ENTERED THE TAX PROFESSION IN 1980’S WILL ALL ELIMINATE FROM INCOME-TAX PRACTICE. IN THIS SITUATION PREVAILING IN INDIA, MY QUESTION IS HOW COME OUR ESTEEMED INCOME-TAX DEPTT. SEEKING VOLUNTARY COMPLIANCE UNDER INCOME-TAX ACT BY ISSUING NOTICES TO WIDEN GENUINE TAX BASE OF ASSESSES IN INDIA SIR.

Leave a Reply

Your email address will not be published. Required fields are marked *