Non-Filers Monitoring System (NMS) – CBDT and Finance ministry is watching you

What is Non-Filers Monitoring System (NMS)?

The Income Tax Department (ITD) has launched a pilot project namely “The Non-filers Monitoring System (NMS)”. NMS is a result of combined information network gathered through –

  • Annual Information Return (AIR),
  • Centralized Information Branch (CIB),
  • TDS/TCS Statement etc.

The Finance Ministry has recently sent various notices to income tax return non-filers based on information and analytics generated by NMS. Such notices have been sent through messages, emails and physical letters based on details registered on non-filers PAN database available with CBDT records.

Recently, Finance ministry has given deadline of 21 days to respond to such notices. Such responses can be given online by log in to www.incometaxindiaefiling.gov.in

In case no ITR filed or no response is provided, initiation of proceeding under Income tax, 1961 will be considered.

Type of transactions which would have been identified in NMS

  1. Cash payments for purchase of bank drafts or pay orders or banker’s cheque, totalling Rs. 10 Lakh.
  2. Cash payments for pre-paid instruments issued by RbI, amounting to Rs. 10 Lakh
  3. Cash deposit/withdrawal totalling, Rs. 50 Lakh or more in single financial year.
  4. Cash deposits in one or more accounts (other than current account), amounting to Rs. 10 Lakh by an individual
  5. Deposits amounting to Rs. 10 Lakhs or more in single financial year.
  6. Payments made by any person-i. Up to Rs. 1 Lakh or more in cash;ii.  Rs. 10 Lakhs or more by any other mode, against credit card bills of one more issued card in single financial year
  7. Receipt from any person of an amount aggregating to Rs. 10 Lakhs or more in a F.Y. for acquiring bonds or debentures (other than on renewal) issued by the company or individual.
  8. Payment of an amount for shares to a company, amounting to Rs. 10 Lakhs in a financial year.
  9. Buy Back of shares by any person, totalling Rs. 10 Lakh or more in a financial year.
  10. Receipt of money for acquiring units of one or more schemes of mutual funds acquired by any person adding upto to Rs. 10 Lakhs or more in a financial year.
  11. Receipt for sale of foreign currency involving credit of such currency into a foreign exchange card or expense in such currency through a debit card or credit card or through issue of traveller’s cheque or draft or any other instrument of an amount aggregating to Rs. 10 Lakhs or more during a financial year by any individual.
  12. Immovable property bought or sold by any person of an amount of Rs. 30 Lakhs or more or valued by stamp valuation authority at Rs. 30 Lakhs or more.
  13. Cash payment for sale of goods or services (other than mentioned in above 1-12) made by any person of Rs. 2 Lakhs
  14. Cash deposits made in the interval of 9th November to 30th December 2016 which sums up to-Rs. 12,50,000 or more, in one or more current account of a person; or Rs. 2,50,000 or more, in one or more accounts of a person (other than current account)
  15. Deposits between April 1st 2016 to November 9th, 2016 in respect of accounts that are reportable under S.I. No.14 because cash deposited in this account between November 9th 2016 to  December 30th 2016 amounts to- Rs. 12,50,000 or more, in one or more current account of a person; OR Rs. 2,50,000 or more, in one or more accounts of a person;
  16. Form 26AS showing details of tax deducted by person

To do for by Income tax return (ITR) non-filers

  1. Check your email ID, mobile phone and letters received at your registered address to check any income tax notices received from the department.
  2. Log in to incometaxindiaefiling.gov.in and respond to queries appearing in the section “Compliance”
  3. Do check the transactions through your bank statements, trading account or any other documents before filing any responses.
  4. Take help of your consultant before taking any further action / replying to queries raised by department.

Author Bio

Qualification: CA in Practice
Company: N N M & ASSOCIATES
Location: PUNE, Maharashtra, IN
Member Since: 30 Sep 2018 | Total Posts: 2

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4 Comments

    1. NAGRAJ2011 says:

      I think if income tax returns are not filed then department may raise a query. If ITR are filed and transactions are correctly reported then there will not be an issue.

    1. NAGRAJ2011 says:

      I agree. I can see this casual approach in my client base also. May be this is because there is only online submission to be given and no physical documents submission at department. Once department start sending summons then assessees will have some seriousnes.

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