The Central Board of Indirect Tax and Customs (CBIC) and Central Board of Direct Taxes (CBDT) signed the Memorandum of Understanding (MoU) for exchange of information on a real time basis. After this the GST portal is linked with the Income tax portal.
The assessee who has not filed the income tax return or GST return will be able to see their GSTR-2A purchases on the income tax portal. Further TDS and other High Value Transactions information is available with the Income Tax Department.
You may get a message like this from the Tax department, “the Income Tax Department has received information on financial transactions/activities relating to XXXXXX729X for Financial Year 2019-20. However, as per records available, you do not appear to have filed an Income Tax Return for Assessment Year 2020-21 (relating to FY 2019-20).”
Nothing to worry about this message. This is similar to Marketing campaign. The Tax department is sending email/sms to the taxpayers that they have received information from various sources about High Value transactions made by you.
The objective of the campaign is to facilitate taxpayers to validate the information available with the tax department, pay applicable taxes and file income tax returns. The above email/message is sent to prompt the taxpayers that ‘Look my dear friend, I have the details of transactions made by you, please pay tax and file income tax return Tax before the due date of filing return else face huge consequences of paying tax along with interest and penalty etc at later stage.’
Visit the compliance portal, submit an online response by selecting any of the options namely Information is correct, Information is not fully correct, Information related to other Person/ Year, Information is duplicate/ included in other displayed information and Information is denied.
If Information is correct, file income tax return after paying due taxes and in case you are not liable to file return, submit an online response under ‘Response on non-filing of return’ on Compliance Portal.
In case if you have already filed income tax return but not declared correct tax liability, pay due taxes and file revised return.
If you are liable to pay tax and not file return by the due date, you can’t file return thereafter and proceedings under the Income Tax Act, 1961, may be initiated to determine your income and tax liability. If you get assessment notice, you will end up paying interest and penalty in addition to tax liability.
Under this e-campaign the Income Tax Department is sending email/sms to identified taxpayers to verify their financial transactions related information received by the I-T department from various sources such as Statement of Financial Transactions (SFT), Tax Deduction at Source (TDS), Tax Collection at Source (TCS), Foreign Remittances (Form 15CC) etc. The department has collected information related to GST, exports, imports and transactions in securities, derivatives, commodities and mutual funds under information triangulation set up.
Visit Compliance Portal at https://compliance.insight.gov.in or Login to the e-filing portal by using the URL https://incometaxindiaefiling.gov.in and Click on ‘Compliance Portal’ link available in “My Account” or “Compliance” tab.
After successful login, click on ‘e-Campaign’ Tab available at home page of Compliance Portal to view Information Summary screen.
Click on “Financial Year” under Significant Transactions/Non- Filing of Return/High Risk Transactions option (Whichever is applicable).
Click on ‘Financial Year’ available under ‘e-Campaign–Information Confirmation’. (Applicable for non-filing of return).
Click on the “>” button to view information in detail.
Click on the “View Response” button under Information detail.
A Pop-up window will appear displaying the details of the response submitted by the taxpayer.