Are you a taxpayer seeking a convenient way to respond to high-value transaction (For Understanding High Value Transactions-Income Tax refer to link) notices from the Income Tax Department?
The income tax department employs diverse data analysis methods to identify individuals who either haven’t filed income tax returns or have inaccurately reported their income. In pursuit of this, the department is partnering with various government agencies to access data on individuals exhibiting substantial expenditures yet failing to file ITR or accurately disclose their income.
Look no further than the user-friendly Income Tax Compliance portal! This platform is designed for ease, allowing you to submit responses online without visiting the Income Tax Department’s office. Wondering how to use it? Here’s a simple guide:
Step 1: Log into the Income Tax Compliance Portal
Use your PAN number and password to log in. If you don’t have a password, click ‘forgot password’ to generate one.
Step 2: Review the High-Value Transaction
Once logged in, taxpayers can easily access the reported high-value transaction by navigating to Pending actions, selecting the Compliance portal, and clicking on E Campaign.
Step 3: Choose the Appropriate E-Campaign
On the e-campaign portal’s landing page, simply select the relevant e-campaign and click on ‘Provide feedback in AIS.’ If there are no active e-campaigns or e-verifications, you’ll see the message “No Compliance Record has been generated for you.”
Step 4: Choose Information Category
Look for the “E” mark next to the information category mentioned in the communication you received. The “E” signifies expected information.
Step 5: Provide Your Response
Choose the most suitable response from the available options:
- Information is correct
- Information is not fully correct
- Income is not taxable
- Information relates to other PAN/year
- Information is duplicate/included in other displayed information
- Information is denied
The response will be sent to the Income Tax Department for further processing.
The taxpayer is anticipated to provide responses in the following e-campaign categories:
- Preliminary Response
- Feedback on Information on AIS
Preliminary Response
Under the ‘Preliminary Response’ section, taxpayers need to address specific questions tailored to the campaign type, such as non-filing of a return or certain high-value transactions. For instance, in the ‘Non-Filing of Income Tax Return’ campaign, taxpayers must indicate whether they have filed an income tax return.
Steps:
- Click the ‘Provide Response’ button in the ‘Preliminary Response’ section.
- On the subsequent page, respond by selecting the appropriate options from the drop-down menu.
- Provide additional details as requested by the income tax department, such as the Acknowledgement Number, filing date, mode of filing, circle/ward, city, and optional remarks.
- If an income tax return has not been filed, select the reason and provide remarks.
- After entering all relevant information, submit the response. Download the submitted preliminary response from the ‘Activity History’ screen.
If no active e-campaigns or e-verifications exist, a message will state, “No Compliance Record has been generated for you.”
Submit Feedback on Information in AIS
Provide feedback on information in the e-campaign where no previous feedback was given. Address the L1 information marked as ‘Expected.’
By following these steps, taxpayers can effectively respond to income tax department notices regarding high-value transactions or non-filing of income tax returns.