E-Campaign by Income tax Department

[CBDT Press release dated 18th July 2020]

A. Why this e-Campaign Now

This e-Campaign is implemented to address

> Provide opportunity to rectify discrepancies or deficiencies in the Income Tax returns already filed by the assessee [Filers]

> Provide opportunity to those who have not filed their income tax returns [Non-filers] for FY 2018-19 to file the return now

> Both the above opportunities are given especially for those who have done high value transactions as reported in their PAN and has come to the knowledge of the Income tax department

> Through this opportunity, people who have not reported those high value transactions can now validate the high value transactions by filing income tax returns or by rectifying the non-reporting of the transaction.

tax return - Coffee mug and wooden letters on wooden background

B. What are the benefits to taxpayers?

By opting for voluntary compliance, the taxpayers

> Will resolve any discrepancies or deficiency with respect to high value transactions; and

> Will avoid further notices or scrutiny process from the income tax department because of non-reporting of high value transactions.

C. How this Voluntary Compliance work?

The Income tax department will send to identified taxpayers (both filers and non-filers)

> SMS / emails

> To verify the financial transaction the information of which is already available with Income tax Dept, through

    • Statement of financial transactions (SFT)
    • Tax deduction at Source
    • Tax Collection at source
    • Foreign remittances
    • GST, Imports, Exports
    • Transactions in Securities, Derivatives, Commodities, Mutual funds etc

D. How response can be given by taxpayers?

Taxpayers can login into designated portal and file online responses as follows

> Information is correct

> Information is not fully correct

> Information is related to other person/ year

> Information is duplicate/included in other displayed information

> Information is denied

 Please note only online response is required to be filed and no visits to Income tax department will be required to file the responses.

E. Other Points to be noted

> The last date for filing Income tax returns (both original and revised) for FY 2018-19 (AY 2019-20) is 31st July 2020 and thus this campaign merges well within that.

> In the normal course Income tax department would have sent notices or would have initiated scrutiny process after the completion of due date of filing of returns. However, to avoid any notices or scrutiny process and with objective of giving any opportunity to assessee the income tax department has started this e-campaign, so that the taxpayers can make use of this opportunity and comply with income tax provisions.

Disclaimer

This information is purely for educational purpose. Readers are advised to take professional advice before taking any decision based on the above contents.

Author Bio

Qualification: CA in Practice
Company: R V K S and Associates
Location: Bangalore, Karnataka, IN
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I am Practicing CA from Bangalore, I am Practicing in Direct Tax, Statutory Audit, Audit of Trusts and NGO View Full Profile

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