Introduction

The income-tax department has started to reach out to certain taxpayers who have either not filed income-tax returns (ITR) or failed to accurately report high-value transactions in their returns. Objective of the e-campaign is to facilitate taxpayers to validate their financial transaction information against information available with the IT department and promote voluntary compliance, especially for the assessee for the FY 2018-19 (AY2019-20) so that they do not need to get into notice and scrutiny process. Department has started sending SMS & Emails to such taxpayers about e-campaign on High Value Transactions on Compliance Portal.

Launch of e-Campaign

The Income Tax Department has started an e-campaign on voluntary compliance of Income Tax for the convenience of taxpayers. The campaign ending on 30st September, 2020 focuses on the assessees/taxpayers who are either:-

1. Non-filers of Income Tax Return or

2. Have discrepancies/deficiency in their returns for the FY 2018-19.

SMS/Email from Income Tax on High Value Transaction under e-Campaign

Taxpayers have started receiving following SMS and Email:-

High Value Transactions e.g. Share Trading/Derivatives

“ Attention (XXXXX1111X), the Income Tax Department has identified high value information which does not appear to be in line with the Income Tax Return filed for Assessment Year 2019-20 (relating to FY 2018-19). Please submit online response under e-Campaign tab on Compliance Portal (CP). Access CP by logging into e-filing portal (My Account) – ITD “

“ We appreciate that you have filed your Income Tax Return and contributed towards the progress of Nation. However, the Income Tax Department has received information on high value transactions relating to (XXXXX1111X) for Financial Year 2018-19. On the basis of data analysis, the Income Tax Department has identified following high value information which does not appear to be in line with the Income Tax Return filed for Assessment Year 2019-20 (relating to FY 2018-19) “

High Value Cash Deposit

“ Dear GXXXXN SXXXH- Income Tax Department has received information about Cash Deposit of 10100000 relating to XXXXX0444X in FY 2018-19. However, as per records available, ITR for AY 2019-20 has not been filed. Please file your ITR by 30.09.2020. You can view transaction details and submit response under e-Campaign tab on Compliance Portal (CP). Access CP by logging into e-filing portal (My Account) – ITD “

What is the source of information for e-Campaign?

Under this e-campaign the Income Tax Department is sending email/sms to identified taxpayers to verify their financial transactions related information received by the I-T department from various sources such as Statement of Financial Transactions (SFT), Tax Deduction at Source (TDS), Tax Collection at Source (TCS), Foreign Remittances (Form 15CC) etc. The department has collected information related to GST, exports, imports and transactions in securities, derivatives, commodities and mutual funds under information triangulation set up.

Are you filling ITR without certain Incomes

What is Compliance Portal?

Compliance portal is the dedicated portal operationalized under Project Insight to enable e-verification (i.e. capture of response on specific compliance related issues in a structured manner) for effective compliance monitoring and evaluation. The Compliance portal also enables a seamless, secured two way structured communication to enhance the transparency and functional efficiency of the department.

How to login to Compliance Portal?

Step 1: Login to the e-filing portal by using the URL https://incometaxindiaefiling.gov.in/

Step 2: Click on the ‘Compliance Portal’ link available in “My Account” or “Compliance” tab.

Compliance Portal

Step 3: The user will be redirected to the compliance Portal.

Functionalities under e-Campaign on Compliance Portal?

Under e-Campaign tab of Compliance Portal, information received from various sources related to the taxpayer is displayed for seeking feedback. The taxpayer is required to submit response on each information item to complete the process of submission of response. Following e- Campaign functionalities are available:

e-Campaign

e-Campaign on Compliance Portal

What is a Non-filing of return case?

A taxpayer who is having total income above the prescribed limit or fulfils any other condition mentioned in section 139 of the Income Tax Act 1961, is required to file return of income. Non-filers with potential tax liabilities are identified by analysing information received under Annual Information Return (AIR), Statement of Financial Transactions (SFT), Centralised Information Branch (CIB), TDS/TCS Statement, Securities Transaction Tax (STT) etc. and taxpayer profile.

How a Non-filing of return case is identified?

Non-filers with potential tax liabilities are identified by analysing information received under :-

√ Annual Information Return (AIR),

√ Statement of Financial Transactions (SFT),

√ Centralised Information Branch (CIB),

√ TDS/TCS Statement,

√ Securities Transaction Tax (STT) etc

Cases for e-verification are identified on the basis of scenarios and rules approved by the Central Board of Direct Taxes.

What is ‘Taxability of Transaction Relating to Sale of Immovable Property’?

In this response category, the taxpayer is required to give information about the taxability of amount relating to sale of immovable property. The taxpayer can enter relevant information in the following fields to arrive at Income/Gain/Loss with reference to such transaction.

a) Receipts related to above information

b) Stamp value at which property is registered

c) Value taken for computation of capital gains

d) Value relating to other year/PAN

e) Value covered in other information

f) Exemption/Deduction/Expenditure

g) Income/Gain/Loss

What is ‘Source of Funds’?

In this response category, the taxpayer is required to indicate source of deposit/investment/expenditure. If amount is from more than one category, the source of amount may be assigned under various categories in the sequence mentioned below, (Adopting other sequence may result in case being selected for verification based on risk criteria)

a) Out of earlier income or savings

b) Out of receipts exempt from tax

c) Received from identifiable persons (with PAN)

d) Received from identifiable persons (without PAN)

e) Received from un-identifiable persons

f) Others

What if I don’t Respond to Compliance Alert ?

Non/Wrong compliance with communication from Income Tax Department, may lead you to face Notice from income Tax Department regarding assessment/Penalty/Prosecution etc.

Compliance Alert

Response to reported Transaction

Under the e-campaign the taxpayers will be able to access details of their high value transaction related information on the designated portal. They will also be able to submit online response by selecting among any of these options:

(i) Information is correct,

(ii) Information is not fully correct,

(iii) Information related to other person/year,

(iv) Information is duplicate/included in other displayed information, and

(v) Information is denied.

Response to reported Transaction

There would be no need to visit any Income Tax office, as the response has to be submitted online.

How can taxpayer view the submitted response on each Information?

Step 1: Visit Compliance Portal at https://compliance.insight.gov.in or Login to the e-filing portal by using the URL https://incometaxindiaefiling.gov.in and Click on ‘Compliance Portal’ link available in “My Account” or “Compliance” tab.

Step 2: After successful login, click on ‘e-Campaign’ Tab available at home page of Compliance Portal to view Information Summary screen.

Step 3: Click on “Financial Year” under Significant Transactions/Non- Filing of Return/High Risk Transactions option (Whichever is applicable).

Step 4: Click on ‘Financial Year’ available under ‘e-Campaign –Information Confirmation’. (Applicable for non-filing of return).

Step 5: Click on “>” button to view information detail.

Step 6: Click on “View Response” button under Information detail.

A Pop-up window will appear displaying the details of response submitted by the taxpayer.

Can I check information being reported, but don’t file response ?

Taxpayer’s every action is being watched & reported in the form of different icons against each information being reported on compliance portal.

Can I check information being reported, but don’t file responseWhat to do along with Compliance Submission?

What to do along with Compliance Submission

In case you have not filed the ITR, then you may be required to file ITR.

In case you have filed ITR without certain incomes, then you may be required to file Revised ITR.

But both of them can be done, only if it is permissible within statutory due dates e.g. 30/09/2020 is due date for filing ITR of FY 2018-19 (AY 2019-2020).

Data-Sharing MOUs with various entities

After reading above article, you now must be thinking, how database of Income Tax is being built. CBDT is entering into various MOUs with SEBI, CBIC, MoMSME etc for exchange of information. Text of Press Release can be read from following links-

Press Release MoU between CBDT and MoMSME

https://taxguru.in/income-tax/cbdt-signs-mou-momsme-sharing-data.html

Press Release MoU between CBDT and CBIC

https://taxguru.in/income-tax/cbic-cbdt-sign-mou-facilitate-exchange-data.html

Memorandum of Understanding between CBDT and SEBI

https://taxguru.in/sebi/sebi-signs-mou-cbdt-share-data.html

Further , CBDT has launched new Form 26AS to enable taxpayer to view information available with Tax Department, as per following Press Release-

https://taxguru.in/income-tax/form-26as-faceless-hand-holding-taxpayers.html

Final Opportunity

Last date for filing as well as revising the ITR for AY2019-20 is 30th September, 2020. The taxpayer must avail the opportunity to participate in the e-campaign for their own ease and benefit.

*****

Disclaimer: The contents of this article are for information purposes only and does not constitute an advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up. The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that Author / TaxGuru is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. This is not any kind of advertisement or solicitation of work by a professional.

Article Contributed by:

CA Sagar Gambhir | FCA, DISA (ICAI) | casagargambhir@gmail.com

Author can be reached at casagargambhir@gmail.com for any queries, issues & recommendations relating to article.

(Republished with amendments)

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82 Comments

  1. Karthika Kesavan says:

    My parents got this notice. They sold the property for 30 lacs out of which they paid off some expenses for 3 lacs and deposited the rest in bank. But the notice mentions that the property was sold for 75 lacs. But it is not worth so much. After logging in the website i also saw that information. How should I respond. If I say that the information is incorrect what are the proofs to be submitted

    1. CA Sagar Gambhir says:

      1. Copy of Sale Deed/Title Deed Registry
      2. Copy of Purchase Deed Registry
      3. Bank Statement of Receipt of Money
      4. Copy of Computation Chart of Capital Gain Working
      5. Valuation Report from Income Tax Approved Valuer (if FMV as on 01.04.2001 is being taken)
      6. Detail of Construction (if Constructed by you)
      7. Details of Investment(If Exemption Claimed for Capital Gains)

      File ITR (Original/Revised) for AY 2019-2020 till 30/11/2020

  2. Hari says:

    Hi Sir,

    We (6 friends) bought one agriculture land via builder, and provided it to builder for development. I have got High Value Transactions with Jointly mentioned in it for the development agreement only. Let me know what should be the reply for campaign?

  3. paramjit siingh says:

    Sir, Someone done high value transactions fraduently used our PAN of our Firm. Raid done on us and really culprit was caught from different location by GST department who stole the PAN details of our firm and doing ficitious invoices to earn GST refund. We got a notice of high value where as the firm is closed since 2014 VAT surrendered but PAN was active
    What is to be done to avoid any further complication from Income Tax Department.
    We had given a details story to our ITO and Addl DC of Income Tax but there is no response. We too surrendered our original PAN card after raid but no response . What shall we do please advice
    Thanks

  4. Ganesh says:

    Hi, I have received professional income and i file my IT Return in ITR – 3. I have done withdraw and deposit with another bank Rs.14 Lakhs in FY 2018-19, But it is not taxable income. I have received high value transaction message in E- Compaign tab. How can i response it.

    1. CA Sagar Gambhir says:

      Confirm Information is Fully correct (if the amount of cash deposit as per e-campaign match with Bank statement amount)

      Confirm source of cash deposit as withdrawn from Bank account

  5. Blessing says:

    Is it not terrorising the Seniors peoples ,Who are keeping ALL his money in the bank and they deducting tax on that Any business he does that is through bank . Why these kind honest peoples mentally suffer through these kind message ??? Can we have another peaceful approach ????

  6. Krishna says:

    Hi Sir

    We have received following message for the NRE FD: Can you please suggest how to respond.
    Dear XX XX – Income Tax Department has received information about Purchase of immovable property of XXXX relating to XXXXX0XX0X in FY 2018-19. However, as per records available, ITR for AY 2019-20 has not been filed. Please file your ITR by 30.9.2020. You can view transaction details and submit online response under e-Campaign tab on Compliance Portal (https://compliance.insight.gov.in) – ITD

    1. CA Sagar Gambhir says:

      Kindly confirm source of Purchase of Property as Remittance from Outside India from Income Exempt from Tax i.e. NRE account funds

  7. Nitu Shaw says:

    Sir, I really liked you blog.. I have received information about high value transactions relating in FY 2018-19. However, as per records available, ITR for AY 2019-20 has not been filed. Please file your ITR by 30.9.2020. You can view transaction details and submit online response under e-Campaign tab on Compliance Portal (https://compliance.insight.gov.in) – ITD.
    So sir before 30th sep I have submitted ITR File.. In 2018-19 I was trading in future and made huge loss so I thought its not mandatory to file an ITR as I am not falling on tax slab and I made loss too. But suddenly I received this message about high value transaction and when I opened my details in compliance.. I saw the sale value of the stocks were under INCOME FROM DERIVATIVES and many wrong entries were also there..so I have selected an option INFORMATION IS INCORRECT. So sir I wanted to know that if I am not making a profit and I am not eligible to pay tax as per income then why I need to file an ITR. And if they will not be satisfied with my response then what is the next step. Please suggest.

    1. CA Sagar Gambhir says:

      I understand your concern that you don’t have any taxable income and no need to file ITR. But as huge transactions about share derivatives have taken place, it is always preferable to file ITR as Income includes Loss as well. Income tax department will come to know about loss or profits through ITR only. Not filing proper response to e campaign will lead to issue of statutory notice and litigation. Hence it preferred to file the same

  8. Naresh Kumar says:

    Sir I received terminal benefits of 28 lakhs in 2018. same was invested in FFD. after filing of Return Of FY 18 including interst income total 4.5 lakh income of FY 18. But terminal Benifit not included because same is exempted. SFT 005 reported in 26 AS in the month of May 2020. Till date no complince or SMS received. Any problem may arise in future?

    1. CA Sagar Gambhir says:

      In case you have complete documentation of Terminal Benefits received , then there would not be any problem. SFT reporting is for reference only

  9. Peter says:

    Dear Sir,
    On retirement, I received handsome amount which was credited in SBI account opened in joint name with my wife. I filed my ITR and declared everything therein but my wife did not file the return. I transferred a part my amount to a private Bank in cash to get higher interest. Now ITD is sending sms to my wife asking her to file ITR and submit online response on cash transaction. If it is proved that the cash transaction has been done by me, not by my wife, will the Department raise query on me?

    1. CA Sagar Gambhir says:

      In case Cash has been withdrawn from your Bank account and the same is deposited into your wives account within short span of time, then she can file response to e campaign that cash has been received from Husband and give pan details of husband. No need to file ITR in case of no income

  10. Prachi Shah says:

    Sir,

    i have got notification from IT DEPT – COMPLIANCE PORTAL – HIGH VALUE TRANSACTION FOR SALE OF IMMOVABLE PROPERTY BUT ACTUALLY I HAVE NOT SOLD ANY PROPERTY. I HAVE FLAT IN SOCIETY WHICH HAS ENTERED FOR REDEVELOPMENT AGREEMENT. WHAT SHOULD I REPLY TO THIS

  11. Rama Shankar says:

    Dear Sir,
    I applied for activation of my PAN to submit online response on the compliance portal relating to high value transaction but the AO informed that the PAN has been deleted in 2017 due to duplication I.e. one more PAN has been issued to me. But the sms is related to deleted PAN hence another PAN is of no help to submit compliance. What should I do?

  12. HEGGODLUGOPALKRISHNA RAO says:

    Sir I had sold my property at vidiyanagar arasinakunte site no.584/292 around RS.1700000 where I had invested 4.5 lakhs constructed 3.00 sq.house compound sump electricity etc. Further the same amount I had invested in my site SriCHAKRANAGARA site no.21 and constructed 8.00 sq. Building compound wall sump electricity and sanitary connect ions invested 14.00lakhs totally 1850000 hence any tax doesn’t arise

    1. CA Sagar Gambhir says:

      Even if there is no tax liability due to exemption available, but filing of ITR is mandatory. So kindly file ITR as well as response to E-Campaign

  13. Sadhna says:

    I have received an sms to submit online response on cash deposit related to PAN AGOPG6464A in FY 2018-19 but while login to the web portal a message is flashed that this PAN does not exists. Hence I am unable to submit online response to the query. Can I submit offline response? Please guide me

      1. Sadhna says:

        The PAN is deactivated and another PAN has been allotted which has no pending query. The deactivated PAN does not allow the registration on the website of the ITD. This is a ticklish problem which is not resolved even by the Department.

  14. venkatesan p says:

    me lot of loss in share trading my pan no:ATIPV 6284A me living in rent house me and my family members not anybody in own property..me work in salery person,,in private in future i earn money we submit my proper income and tax pay

  15. RAJESH says:

    I got notice for High value transactions in equity market which I really did but there are 6 segments of transactions they asked to reply . Out of them 4 relect to turnover (1speculative sales 2speculative purchase 3 Delivery based purchase 4 Purchase other than actual delivery ) but in rest of 2 segments it is mentioned as INCOME (1 Income on Sales delivery based 2 Income on sales other than actual delivery ).
    What should I reply in respect of last 2 segments which are assuming my sales as income. I am not in profit and all the deliveries were hold for short term only and all the transactions are made with margin money only about one lakh .All the amount mentioned is in crores even in income segments also while I was in a little loss actually.

    1. CA Sagar Gambhir says:

      Income Transactions means Sales Transaction only. In portal, Sales and purchase reported separately. You need to check whether these transactions belong to you and accept that in ecampaign portal. In ITR, Sales minus Purchase I.e Profit or Loss need to be reported accordingly. (Business Profit or Short Term Gain Loss as may be applicable)

  16. Hemanth says:

    Hi Sir,
    We had got lease amount of ₹7,50,000 after vacating house and we had deposited a total of ₹10,91,000 in bank in fy 2018-19. Now getting message to file IT but we have filed IT for FY 2019-20 . Should we file IT for FY 2018-20 ??. If yes then how to justify the cash transaction.

    1. CA Sagar Gambhir says:

      In case there is no Taxable income in FY 2018-19 , then no need to file ITR; but file response to e-Campaign regarding nature of transaction and source of cash deposit.

  17. Ramesh says:

    Sir, I repatriated funds from my NRE account in FY 2018-19. I received email via e-Campaign regarding not filling ITR for AY2019-20 and information regarding the above outward foreign remittance.

    Is there a way to indicate that this outward foreign remittance was from an NRE account and not from income earned and Do I need to file IT Return for AY 2019-20?

    1. CA Sagar Gambhir says:

      In case you don’t have any taxable income in the financial year, then no need to file ITR. (Income may or may not be related to Source of Outward Remittances.) In case don’t have taxable income,then file response to E campaign accordingly.

  18. Saikumar says:

    Hi Sir,
    Good morning,
    I am an NRI and I have received high value transaction related to credit card online payments from Income tax dept. But actually credit card purchases made by my close friend for his business purpose and every month he used to do online transfer to my bank account and I pay the credit credit card bill from my account.
    Could you please help how to resolve this situation.
    I haven’t file ITR because I don’t have any income in India.

    1. CA Sagar Gambhir says:

      File response to transactions as *Information is not fully correct* and give details of pan of the person on whose behalf transactions have been done (I.e. your friend). Kindly get bank account Statement and Copy of ITR of your friend.

  19. Sachin says:

    Res sir Meri mataji ne 2018 me me ek plot 28lack me becha that plot ki registry bhi 28lakh ki thi .aur Aya hua Paisa bank me fix diposite kr diya.unka itr file nahi kiya hai.aur Kal high transaction in2018-2019 compliance sms Aya hai .so pls suggest me what we do

  20. Ajit says:

    Hello Sir, The article is really nice having detailed info. However I have query as below:
    My wife is housewife and resident of India and I am residing abroad NRI.
    We bought property in India and my wife is as a co applicant in agreement for purchasing the property.
    She got an SMS mentioning
    Dear XX XX – Income Tax Department has received information about Purchase of immovable property of XXXX relating to XXXXX0XX0X in FY 2018-19. However, as per records available, ITR for AY 2019-20 has not been filed. Please file your ITR by 30.9.2020. You can view transaction details and submit online response under e-Campaign tab on Compliance Portal (https://compliance.insight.gov.in) – ITD

    Could you please advice :
    I think to chose this option :
    Information relates to other Person/Year :
    INFO – The Taxpayer is aware of the Information but it does not belong to him completely. This may happen in the case of joint ownership of property or joint holding of accounts or other assets. While choosing this option Taxpayer is expected to provide correct and complete information of other person to whom the Information pertains (i.e PAN, relationship and Amount).

  21. Rajat says:

    My grandmother got msg for non filing and high value transaction from e campaign for same year.
    In high value transaction they show a total sum rec’d by my grandmother from sbi pension account as 192 salary (Say 12lac), but fact is 75 percent amt relates to pf and gratuity rec’d as revision for 7th pay (i.e increased amt rec’d next year after retirement i.e 9 lac pf + gratuity) and balance is monthly pension (3lac) . Suggest me what to do?
    What I think is
    1.File ITR and disclosed it properly i.e, 3lac as salary and remaining as 9 lac and gratuity and pf.
    2. In e campaign portal – click on option “info is not fully correct” .( As amt 12 lac rec’d is true but whole amt is not salary, only a portion is and remaining amt is exempt as she was a govt employee.)

    Pls reply and correct me

    1. CA Sagar Gambhir says:

      Information is fully correct as the same belongs to related PAN & assessment year. Further kindly disclose in ITR under correct heads I.e. gratuity exempt.

  22. Sunil says:

    Sir I’m government employee ..My annual income is near about 300000 so I don’t file ITR till now…But on 26 september I received notice about 1) HIGH VALUE TRANSACTION and 2) FILE ITR FOR ASSESSMENT YEAR 2019-2020
    Last date to file ITR FOR FY 2018-19 is 30 SEPTEMBER 2020…
    I purchase and cell share in INTRADAY between 2018-2019 and make huge loss about 4 laks during the year…And E-campaign tab show detail of my intraday transaction..
    Now my question is
    1) should I file ITR ,, if file then which ITR type ITR 1/ ITR 3
    2) intraday trading is ban for gov. .employee I think…
    3) can I file normal ITR1 showing only my salary details ..
    4) they also charge 1000 ra to me under fee u/f234

    1. CA Sagar Gambhir says:

      ITR 3 is applicable in your case and late fees also leviable due to late filing of ITR. You mandatorily need to show all the intra day transactions as well , even if los

  23. Dil bahadur Thapa says:

    Sir I have retired Army on May 2018 .i have got, insurance. Commutation. and gratuity .got message high value traction. Land.purchese loan. Car loan. House loan. Child edn. How to solve this matter.check plz.

  24. Sunil ms says:

    Dear Sir

    I’m an NRI. I have received high value transactions for the year of 2018-19.I have NRI Fd and and normal FD as well ..
    I don’t know for which they noticed for high value.Although I didn’t file my ITR for the year 18-19 my CA he is asking of my presence to return the ITR.Kindly guide me how to fix the issue

  25. Ila says:

    I am a house wife.. my husband TRF some saving to me for fixed deposit. I got high value transaction msg from income tax department.. please tell I need to fill itr for 2018-19

    1. CA Sagar Gambhir says:

      In case income is below 2.50 Lakh, then ITR filing is not mandatory. However it is suggested to file the ITR as you have done high value transaction. Also file response to High Value compliance notice

  26. Pratham P says:

    Dear Sir,

    Thanks for the article. e-campaign site shows 50% of purchase value of immovable property in my name. The title of property is jointly held by me and my father. the purchase was completely out of my father’s funds and he has disclosed it as 100% in his ITR AY 19-20.

    I have filed my original ITR for AY 19-20 a week back.

    What do i respond on e-campaign?
    1. modify and mention value as NIL, or
    2. modify and mention correct proportionate purchase value?, or
    3. any other suggestion

    Thanks

    1. CA Sagar Gambhir says:

      You need to “accept the information as correct” as you are joint owner of the property. In case, source of fund is being asked ; then you can explain the fact that funds have been received from Father.

  27. Pratham P says:

    Dear Sir,

    Thanks for the article. e-campaign site shows 50% of purchase value of immovable property in my name. The title of property is jointly held by me and my father. the purchase was completely out of my father’s funds and he has disclosed it as 100% in his ITR AY 19-20.

    I have my original ITR for AY 19-20 a week back.

    What do i respond on e-campaign?
    1. modify and mention value as NIL, or
    2. modify and mention correct proportionate purchase value?, or
    3. any other suggestion

    Thanks

    1. CA Sagar Gambhir says:

      You need to “accept the information as correct” as you are joint owner of the property. In case, source of fund is being asked ; then you can explain the fact that funds have been received from Father.

  28. deepak negi says:

    My Dad is a pensioner (Army) and he has received gratuity amount in Nov-18 . He has got the high value transaction message. Do we have to pay tax for this ?

    1. CA Sagar Gambhir says:

      In case of Government employee {Section 10(10)(i))}- Any gratuity received by an employee of Central Government, State Government or local authority is wholly exempt from tax. This exemption is not available to employees of Statutory Corporation.

      In case of employees covered by Payment of Gratuity Act,{Section 10(10)(ii))} Exemption is subject to a maximum ceiling of Rs.20 Lakh.(to be calculated as per computation in the section)

  29. Ganesh says:

    Sir, after my father expired his money transferred to my mother account with the help from bank. So now we received high transaction message, so is that taxable.

    Thanks for your help.

    1. CA Sagar Gambhir says:

      There won’t be Taxable in the hand of mother as Gift from Blood relative is not taxable . However Tax on income earned in the father’s account must be paid (if any) by Filing his ITR in representative capacity.

  30. Sunil singh says:

    Dear sir,

    I keep all my saving in my wife account, now I got a message from CMCPCI as they have found high value transaction in her account. U am not sure if this is a genuine message or fake. If genuine then what will need to done, do I need to connect with any chartered accountant. Your advise will be highly Appreciated.

    1. CA Sagar Gambhir says:

      It is genuine message, you can get it verified from Income Tax Portal login; as given in the article. Kindly get compliance done through your tax consultant

    1. CA Sagar Gambhir says:

      Mainly there are two sources of Exports Data being reported to income tax department.

      1. Through Customs department: can be verified from detail of invoices as per shipping Bill’s

      2. Through GST department: can be verified from GSTR 1 Report data

  31. lallu says:

    sir,thank you for this blog
    i have very much losses in share market,so not liable to pay tax
    but i got notice from income tax office and i response to not liable to tax
    so should i response all the information is correct?

    1. CA Sagar Gambhir says:

      Respected Sir,

      Kindly download from e-Campaign portal list of transactions reflecting about Share Trading and reconcile with Transaction Statement as well as Capital Gains statement received from Share Broker.

      In case all the information reflecting on income tax website is correct, then File Response ‘Information is fully correct”

      As ITR Filing due date for F.Y. 2018-19 has been extended by govt till 30.09.2020, it would be preferable in case you file the ITR showing the Gain/Loss from these transactions.

      Generally ITR filing is not required for Income below Maximum Exemption Limit i.e. 2,50,000 , But in case of huge transactions, it is always suggested to File the ITR even in case of Loss, so as to avoid any Notice from the department.

  32. Mina says:

    Resp sir, my minor son received gift from his grandfather, which was invested in mutual funds. Should it be reported as out of receipts exempt from tax, Or receipts from identifiable person with pan. Thanks

  33. AK Srivastava says:

    I have done trading in ‘Stock Derivatives’.In this trading only contract for buy/sell is done on security of pledged existing shares.No payment was made to start/finish the trade.Only net profit/loss was received/paid after squiring up the trade.Net profit / loss has been taken as ‘Short term capital gain’ in my filed return. IT deptt has assumed full contact value as ‘High value transaction’ and issued me notice.What should be my reply for this partially correct information? Should I deny? How can I explain this fact ?- A K Srivastava, 9415429232

    1. CA Sagar Gambhir says:

      1. Derivatives transactions are generally considered as Business Income of the assessee & Reported in ITR on Net Settlement Value basis only.

      2. For SFT reporting purpose, Each Transaction ( buy & sell) will be reflected separately and thus, reported correctly in E campaign.

      3. Kindly reconcile all transactions appearing under e-campaign & if the same pertains to you, then you need to accept the information as Correct.

      If any transaction has been wrongly reported that it dont pertain to you, then you need to deny.

      In case any transaction, there is mismatch in value or quantity or company name, only in that case , you can select the option that it’s partially correct.

      4. There may be possibilities that you have wrongly reported the transactions Taxable @15% tax rate under Short Term Capital Gains head. But these non delivery based transactions have to be taxed at normal slab basis. Please check this as well.

  34. Mayank says:

    Very nicely explained sir. Please write a blog for Traders too who need to audit their transaction, turnover issues etc. We Traders are confused about ITR-2/3

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