Introduction: The Directorate of Income Tax (Systems) has issued a crucial alert to all key stakeholders, including Chief Commissioners, Directors General, and Commissioners of Income Tax, regarding the dissemination of high-risk non-filer cases for the Assessment Year (AY) 2020-21. This communication, dated 16/11/2023, sheds light on the Risk Management Strategy (RMS) Cycle-3 and its impact on tax compliance.
Detailed Analysis: Identification of Non-filers: The communication emphasizes the obligation of taxpayers with income above the prescribed limit or meeting conditions under section 139 of the Income Tax Act to file returns. High-risk non-filers are identified through a meticulous analysis of data received under AIR/CIB, TDS/TCS Statements, and an overall assessment of taxpayer profiles.
RMS Cycle-3 Execution: RMS Cycle-3 specifically targets non-filer cases for AY 2020-21, employing rules and parameters approved by the Board under the Risk Management Strategy. The high-risk cases are made visible to Jurisdictional Assessing Officers on the Insight Portal, categorized as ‘RMS – Non-filing of Return PAN cases.’
Insight Portal Access: The Insight Portal provides detailed views of assigned cases, including Comparative ITR information, key financial ratios, address details, account information, and more. Additionally, the portal allows Assessing Officers to initiate various activities related to case management, such as marking cases as untraceable, non-responsive, entering comments, reassigning cases, and declaring ‘No Return Required.’
Proceedings under Section 148A: The communication highlights that necessary actions under Section 148A of the Income-tax Act, 1961, for the disseminated cases will be initiated after considering all relevant provisions. Assessing Officers are advised to refer to applicable Notifications, Instructions, Circulars, and S.O.Ps issued by the CBDT.
Technical Support: In case of any technical difficulty, users are urged to contact the Insight helpdesk promptly, ensuring a smooth and efficient process. The contact details for the helpdesk are provided in the communication.
Conclusion: The Directorate of Income Tax’s alert on high-risk non-filer cases for AY 2020-21 underscores the commitment to ensuring tax compliance and revenue integrity. The RMS Cycle-3, with its strategic focus on identifying potential tax liabilities, empowers Assessing Officers to take targeted actions. Taxpayers, particularly those falling under the specified categories, are encouraged to engage with the Insight Portal and address any queries or requirements promptly. This proactive approach aligns with the ongoing efforts to streamline tax administration and enhance the effectiveness of the Risk Management Strategy. Stay informed, stay compliant!
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Insight Instruction No. 71
Directorate of Income Tax (Systems),
ARA Centre, Ground Floor, E-2, Jhandewalan Extension,
New Delhi – 110055
F. No. DGIT(S)-2/ADG(S)-2/RMS Cycle-3/446/2023-24 Date: 16/11/2023
To,
All Principal Chief Commissioner(s) of Income Tax/CCsIT
All Principal Director General(s) of Income Tax /DGsIT
All Principal Commissioner(s) of Income Tax /CsIT/CsIT(Admin & TPS)/CsIT (TDS)
All Principal Director(s) of Income Tax/DsIT
Sir/Madam,
Sub – Dissemination of certain High Risk Non-filer cases pertaining to the AY 2020-21 on Insight Portal selected under Risk Management Strategy (RMS) Cycle 3 – reg.
Kindly refer to the above.
2. A taxpayer who is having income above the prescribed limit or fulfils any other condition mentioned in section 139 of the Act is required to file return of income. Non-filers with potential tax liabilities are identified by analysing information received under, AIR/CIB data, TDS/TCS Statement etc. and overall taxpayer profile based on the information available in the database.
3. RMS Cycle – 3 for non-filer category of cases has been executed for AY 2020-21 on the basis of rules/parameters thereto approved by the Board under RMS (Risk Management Strategy) for identifying High Risk Non-filer cases with potential tax liabilities.
4. In respect of above, certain high-risk Non-filer cases for relevant assessment year(s) as approved by the Board have been made visible to the Jurisdictional Assessing Officers on Verification module of the Insight Portal with following case type – ‘RMS – Non filing of Return PAN cases’. The cases can be accessed on INSIGHT portal using following path-
Insight Portal – Verification -Taxpayer – Verification – Case type – RMS -Non filing of Return PAN cases’
For detailed description of Case View and underlying Info, User may refer to the Annexure “A” enclosed.
5. Underlying information including various third-party data/information related to PAN of assigned cases may also be accessed on Profile Views of Insight Portal. Profile Views shows various information related to taxpayer including:
a. Comparative ITR information under Return Profile (TRP)
b. Comparative key values, financial ratios etc. under Financial Profile (TFP)
c. Details of various address, email, mobile numbers under, Master Profile (TMP)
d. List of accounts, immovable assets etc under Asset Details (TAD)
e. List of key persons, shareholders etc uncle, Relationship (TRL)
f. Third Party Information, Aggregated TDS Payments, Aggregated GST Transactions, and other information under Taxpayer Annual Summary (TAS)
6. Following activities are available on Case Detail screen which can be accessed by clicking Initiate Activity drop down button.
a. Mark case as untraceable: This generic functionality allows user to mark such cases where the communications are not getting delivered to the taxpayers untraceable for feedback purpose.
b. Mark case as Non- Responsive: User can mark such crises where the communications are getting delivered to the taxpayer but the taxpayer is not responding to the queries sent on Compliance Portal through this functionality.
c. Enter Comments: User can record remarks at the case level.
d. Case Reassignment: The user can select multiple cases and re-assign/transfer them.
e. No Return Required: In Non-filing of Return (NMS): RMS cases, the user can mark a case as `No Return Required’, if the user comes to this conclusion post assessment of response submitted by the taxpayer.
f. Initiate Proceedings u/s 148A/148: The dropdown provides the user a generic technical functionality to initiate proceedings for RMS cases related to issuance of notice u/s 148A or notice u/s 148 of the Income Tax Act, 1961. The user may use this particular functionality for initiating proceedings related to issuance of notice u/s 148A for cases under RMS.
7. Further, necessary action u/s 148A of the Income-tax Act. 1961 in respect of the above disseminated cases for AY 2020-21 under RMS Cycle-3 shall be taken after taking into account all relevant applicable provisions of the Act.
8. The Assessing Officers may also further refer to relevant Notifications/Instructions/Circulars/S.O.Ps for cases disseminated under Risk Management System issued by the CBDT front time to time.
9. In case of any technical difficulty being observed, users my immediately contact OR write to Insight helpdesk. (Helpdesk number – 18001034216, Email id: helpdesk@insight.eov.in).
Yours faithfully,
Sd/-
(Ankit Verma)
Jt. DIT (Systems)-2(3)
Copy to:
1. PPS to Chairperson, Member (Admin & Faceless Scheme(s)). Member (A&J), Member (IT & R), Member (Inv.), Member (L & S), Member (TPS), CBDT and DGIT(S), Delhi & DGIT(S)-2, Bangalore, for information.
2. Nodal officer of ITBA, Insight i-Library, https://www.irsofficersonline.gov.in.
Jt. D T (Systems)-2(3)
Annexure “A”
Step by Step Screen shots
1. The list of RMS cases assigned to the user can be accessed as under
a) Login to Insight Portal (https://insight.gov.in.
b) Select Verification Tab available under Taxpayer Verification.
c) List of cases assigned to the user will be displayed to the user under Verification Summary
2. User needs to click on count displayed under case status “Under Verification” will navigate user to Case List View.
3. User needs to click on View Detail Hyperlink to navigate to Case Detail View
4. User needs to click on select activity to select Case Level activities
5. Following Activities will be applicable to the Case
a. No Action Required
b. Mark case as untraceable
c. Mark case as non-responsive
d. Enter Comments
e. Initiate proceeding u/s 148A/148
f. Reassign Case
6. User will be able to click on “View Detail” hyperlink displayed against each Verification Issue to navigate to “Verification Issue Detail” screen.
a. To identify Imputed Information i.e. Non PAN Information on which PAN has been imputed based on the Board approved rules, the Information Code will have words “IP” and Information Description will have words “Imputed Information” in beginning.
7. TSN will be hyperlink which will navigate user to pop up view of Information details
8. TSN hyperlink available in case of imputed information will display additional fields to provide complete information received from source.
