Did you receive a notice from Income Tax Department recently? IT department has started a campaign, e-campaign notice to those people who have not filed their income tax return or not reported high-value transactions in their income tax statement. This notice has been sent for the income tax filing for the financial year 2019-20.
There are mainly two objective of this e-campaign notice.
To reach out to the taxpayers. This is for those people who have not filed their income tax returns in time. There are many people who still have not filed their income tax returns for the financial year 2019-20. In such cases, you will get a notice from the income tax department for non-compliance.
For not reporting income accurately. This is for those set of people who have not reported their income accurately. These people have to hide their income in one or the other way. The income tax department has gathered the information about the taxpayers from the various sources like PAN card, bank account, Demat account, real estate registrar, etc.
From these sources, they have gathered all the details of the individual taxpayers and have cross-checked with their income tax statement that they have filed. If they found any discrepancy between the income details and reported details, then they have sent the notice to those people for non-compliance.
This nonreporting of the income could be anything like, not declaring fixed deposit interest income, savings accounts, TDS deducted but not declared, few investments like stocks and mutual funds.
Apart from this, there is another objective for this e-campaign notice is to rectify any error in the income tax filing. In a way, it is a chance for the taxpayer to rectify the error in the income tax filing.
There may be the case that someone has done any transaction under your PAN card and you might be not aware (chances are rare, but still), so that you can declare that transaction under this rectification and re-file your return.
How this e-campaign notice works?
The income tax department has collected the transaction details of the taxpayers from various sources like a bank account, PAN card, TDS statements, Demat account, mutual fund account, etc.
They have then cross-checked the income details with the one that you have reported in your IT return. If there is any discrepancy, then they will send an e-mail and SMS to the taxpayer informing them about this mismatch.
e-campaign notice – Transaction type
Below are the list of the transactions types on which the e-campaign notice has been sent to the tax payer.
- High-value transactions done but not declared in the income tax filing. These transactions could be in real estate, mutual funds, stocks, etc.
- Nonreporting of fixed deposit interest. – any interest earned on the fixed deposits which are not declared in the income tax filing. Most of the people think that they have reported all the things as per form 26A so there is no need to declare the FD interest. But that is not the correct way, you have to report all the income of FD interest even though it is within the limit.
- Nondisclosure of the bank account. – There are cases where the taxpayer has not to declare his/her bank account in which the transactions are done during the financial year.
- Nondisclosure of any foreign assets. – Taxpayer has to declare foreign assets like real estate in the tax statement.
- Non-reporting of high-value cash deposition in a bank account. – If you have deposited any high-value cash in your bank account, then that must be declared in the income tax return.
You should be worried if there are any miss in reporting of the above mentioned transactions in your income tax filing. Don’t be worried if there is no any miss in the reporting.
e-campaign notice example
Below is the notice example for not declaring the fixed deposit interest in the IT return.
Tax payer may receive an e-mail or SMS containing above message from the IT department.
e-campaign notice – What Should a Tax Payer do?
- If you are the one who has got this notice from the income tax department, first of all, you need to login into your income tax portal
- Then go to the ‘Compliance tab’.
- Then go to ‘Compliance Portal’.
- Respond to the query with a suitable answer.
- If you need to file the revised return, please file it.
- Do this as soon as possible. The deadline was 31st March 2021. But they will allow some more days for compliance.
Conclusion:
Most of the tax payer think that their filing is accurate if they file it as per the form 26A. but there are many more financial transactions that needs to be reported in the income tax filing. It is better that you hire a professional chartered accountant for filing your income tax return. e-campaign notice is just a starting of the new tax regime. There are many more strict actions will be taken by the income tax department. So be ready and don’t fall in the list of the income tax notices.