Introduction: Recent SMS messages and emails from the Income Tax Department have left taxpayers concerned and seeking clarification. The messages highlight discrepancies between high-value transactions and filed Income Tax Returns (ITR) for the Assessment Year 2023-24. This article explores the nature of these communications, the department’s clarification, and steps taxpayers should take to ensure compliance.
Understanding the Communication:
Recently many tax payers have got SMS messages / emails from the income-tax department
Attention XXXXXXX (XXXXXXXXXX)
Income Tax Department has identified certain information related to high value transactions, which does not appear to be in line with the Income Tax Return filed by you for the Assessment Year 2023-24 (relating to FY 2022-23). You can view the information on compliance portal. Please submit your response online under e-Campaign tab on Compliance Portal or revise your ITR.
After login to the e-filing Portal (https://www.incometax.gov.in), please go to ”Pending Actions” tab and click on ”Compliance Portal”. On Compliance Portal, navigate to ”e-Campaign tab” and view campaign type ”High Value Transactions” to submit response. If the information has been correctly accounted for in your ITR, you may ignore this message. Thank you, – Income Tax Department.
Naturally, this has caused concern to the recipients and has got them scrambling to their tax consultants to find out what this is all about and what is to be done.
Department’s Clarification:
Because of the furor caused on social media because of these messages, the income-tax department issued a social media post as under:
Some references have come to the notice of the Income Tax Department regarding recent communication sent to taxpayers pertaining to transaction(s) made by them. Taxpayers may pl note that such communication is to facilitate the taxpayers & make them aware of the information available with the ITD regarding the transactions reported by the Reporting Entities during the year.
It is not a notice sent to all taxpayers, but is an advisory sent in only those cases where there is an apparent mismatch between disclosures in the ITR & information as received from the Reporting Entity.
The objective of the communication is to provide an opportunity to taxpayers & facilitate them to provide their feedback online on the Compliance Portal of ITD &, if necessary, revise their Returns already filed OR to file the Return if not filed, so far.
The last date for revising or filing belated return for AY 2023-24 is 31st December, 2023. Taxpayers are requested to respond to the communication on priority.
So, as per this “clarification” issued by the tax department, they seem to be saying that what has been sent to taxpayers is only an “advisory” sent in only those cases where there is an apparent mismatch between disclosures in the ITR & information as received from the Reporting Entity. Readers would be aware that over the past few years, the income-tax department has been garnering massive data about various types of financial transactions that everyone in the country carries out. This reporting is done by various agencies / bodies against the PAN of each such person who enters into the transactions. So, now, the income-tax department has complete details of each PAN holder in respect of the following important types of transactions:
- Immovable property deals
- Mutual fund transactions
- IPO purchases
- Credit card expenses
- Bank interest
- Dividends
Annual Information Statement (AIS):
Now, the details of all above transactions are then made available by the tax department to each PAN holder in a document called Form AIS. This is the Annual Information Statement that a tax payer can download from the income-tax portal.
Ideally, each tax payer should download this before filing his/her tax return for any year and ensure that the transactions reported in the AIS are duly reflected in the ITR to be filed. Those who have not done this have a very high chance of having missed including some items of income in the tax return. This will naturally be very easy for the tax department to spot. And when this happens, unpleasant consequences would follow for the tax payer.
Therefore, it is strongly advisable to check the AIS immediately and match it with the income / transactions reported in the ITR. Of course, some things reported in the AIS may not necessarily be reported in the ITR – for example, purchase of an immovable property. So, one need not worry too much about such things. However, it is critical that proper professional advice is taken while deciding whether any item reflected in the AIS is required to be disclosed anywhere in the ITR or not. For example, if you have bought an immovable property then in the normal course, it is not required to be reported (as mentioned above). However, if your taxable income exceeds Rs 50 lakh then you are supposed to fill up one schedule in the ITR called Schedule AL. Here you are supposed to give details of certain assets (such as immovable property, shares, mutual funds etc). Now, the cost of the newly acquired immovable property ought to have been disclosed in Schedule AL if this schedule was applicable to you. A layman would be clueless about such nuances and if he/she choses to file the ITR on his/her own or selects a low cost website / app to prepare the ITR then one can only imagine how accurate the ITR would be!
Verification Steps for Taxpayers:
In light of the above, readers may want to follow the following steps to check the AIS and verify whether there is really a mismatch between the reported items and the data in the ITR.
1. Go to www.incometax.gov.in
2. Login using your PAN and password
3. In the various options available there is “Pending Actions”. Click on that
4. You will get five options in a drop down list. Select “Compliance Portal” in that list
5. A small window will open which says as under:
On click of ‘Proceed’ button, you will be redirected to the Compliance Portal. You will be leaving the e-Filing Portal and accessing the Compliance Portal of the Income Tax Department. In case of any difficulty in accessing the Compliance Portal, please contact the Compliance Portal Help Desk at Toll free number 1800-103-4215. For more information, please refer Help Desk details given at Contact Us.
6. Below this message, there are two options – “Cancel” and “Proceed”
Click on “Proceed”
7. Another tab will open in your browser with the following URL: https://ais.insight.gov.in/complianceportal/ais/home/page
8. On this page, there are several options. Select “e-Campaign”
9. The following window will appear on your screen:
10. So, now you need to go back to the AIS by clicking on the “Provide Feedback in AIS” tab shown in the above screenshot
11. When you do this, a pop up window will appear on your screen as under:
12. Proceed further by clicking on “OK
13. You will then get the AIS data on your screen. This is divided into different categories as can be seen from the below screenshot:
14. If you select the “SFT Information” in this Part B, you will get on your screen details of the various financial transactions entered into by you during the year as reported by various agencies / bodies.
15. For each such entry in the SFT Information, you can click on that item and it will expand to give you complete details. On the right end of the information, there is a heading “Feedback”. Under this, normally, the word “Optional” appears.
16. Click on “Optional” and a new screen appears as under:
17. In the tab for “Feedback type”, there are drop down options as under:
- Information is correct
- Information is not fully correct
- Information related to other PAN / Year
- Information is duplicate / included in other information
- Information is denied
18. If the concerned information matches with your records and your IT Return then, click on the first option i.e. “Information is correct” and then move onto the next item in the SFT Information.
19. If the information is not correct and you select any of the other options mentioned above, then further details are required to be provided.
Conclusion: The Income Tax Department’s advisory aims to enhance compliance and awareness among taxpayers. It is crucial for taxpayers to proactively review the AIS, identify any discrepancies, and submit feedback promptly. The clarification underscores the advisory nature of the communication, emphasizing its role in facilitating taxpayers rather than penalizing them. Responding to the communication on the Compliance Portal by the specified deadline is essential to avoid potential issues. Stay informed, consult tax professionals, and take necessary steps to ensure accurate and compliant tax filings.
Author Bio
Many tax payers have similar complaints. At the time of filing ITR, few dividends were not reflected in AIS / 26AS. Now it is visible and IT department is asking to approve it. So, tax liability automatically increases. Further, e-campaign email sent after 31st December. So, tax payers are in FIX. Please go to compliance portal, under help raise the ticket with screenshot of your email received after 31st December and pressurize IT department to allow tax payer to modify the filed ITR. Please spread this message to all who are affected by the mismanagement of IT department.
Many tax payers have received an email of high value transaction under e-campaign after 31st December. At the time of filing ITR, few dividends were not reflected in AIS / 26AS. Now it is visible and IT department is asking to approve it. So, tax liability automatically increases. Further, e-campaign email sent after 31st December. So, tax payers are in FIX. Please go to compliance portal, under help raise the ticket with screenshot of your email received after 31st December and pressurize IT department to allow tax payer to modify the filed ITR. Please spread this message to all who are affected by the mismanagement of IT department.
I received a similar e compagin ntoice.on 4th Jan 2024 for hig value transaction for DIVIDEND , Interst income , and the date for revised has already passed by 31st DEC 2023. earlier when I file ITR in July 2023, everything was okay, got return as well, Now what to do because those new value are correct to some extend and to some extend it is not as well.
What happens if I don’t reply or do anything as it is advisory not a notice , Please calrify
I got email from e campaign ay 2023-24 in AIS i see one FD of Rs 14 lakhs twice Bank has closed Fd and rebooked 2 times Actual value of FD booked is 14 Lakhs what do I do Please help
You need to response to the notice in E-campain portal. To discuss in detail you can contact me at 9024915488.
If the information asked by income tax department as hight value transaction is already reported while filling income tax, then what is the appropriate option to choose to give response??
Sir, I have invested term deposit in Post office. But the Post off doesn’t deduct TDS.I got IT alert to submit response. Please inform how much IT percent to be deducted on post office Term deposits and saving account interest. Thank you sir….
Dear Sir
I downloaded AIS on 5/6/2023. Fully reconciled my dividend data with it. It shown Dividend of 102000/-. Filed return on 16/6/2023. It has been processed.
Now under e-compliance dividend shown is 148000/-.
what should I do.
thanks