REMINDER FOR NON-FILERS TO FILE/REVISE ITR FOR THE A.Y 2019-20
Central Board of Direct Tax has started an e-campaign on 18th July, the campaign is on Voluntary Compliance of Income-tax for the F.Y 2018-19 corresponding to the assessment year 2019-20. This e-campaign will be available for the taxpayers till 30th July. This important campaign shall focus on the taxpayers who have either not filed their Income Tax Returns or have been detected for discrepancies/deficiency in their ITRs for the FY 2018-19.
With the help of Information Technology, the IT Department has full knowledge of the taxpayers. The Ministry of Finance has come out with a novel campaign aimed at luring both the defaulting & the dishonest taxpayers by sharing the information in their possession.
OBJECTIVE OF THIS CAMPAIGN:
The objective of the e-campaign is to facilitate taxpayers to validate online their tax/financial transaction information available with the I-T Department, especially for FY 2018-19, and promote voluntary compliance so that they are saved from the lengthy process of notice and it’s compliance in the scrutiny proceedings.
Due to the lockdown on account of the current pandemic situation, the Government had extended the last date of filing/revising the ITR for the assessment year 2019-20, relevant o 2018-19, to 31st July as against the statutory cut off date was on 31st March 2020.
The Income Tax Department will start sending email/SMS to those identified taxpayers regarding the financial transactions related information received by the I-T Department from the various sources such as Statement of Financial Transactions (SFT), Tax Deduction at Source (TDS), Tax Collection at Source (TCS), Foreign Remittances, etc.
The Department is in possession of detailed information relating to GST, exports, imports, and transactions in securities, derivatives, commodities, mutual funds, etc. According to the data received the IT department has identified certain taxpayers with high-value transactions who have not filed returns for AY 2019-20.
The Department has also identified the assessees wherein the high-value transactions are not reflected in the Income Tax Return filed by them. Since, the taxpayers will now have access to information, as available with the IT department, with respect to the high-value transactions, they can revise their ITRs to incorporate these mismatches.
HOW TO RESPOND TO MESSAGE SENT BY IT DEPARTMENT?
In response to the SMS/e-mails, the assessee can submit an online response by clicking the applicable options.
The assessee should check whether the information is correct or not fully correct or that the Information relates to some other person/year or whether the Information is duplicate/included in other displayed information or lastly that the Information is incorrect & denied.
The whole process is faceless and the assessees would not be required to visit the Income Tax office because the response is only required to be submitted online.
However, in the Press Release, they have not expressed or stated whether in the delay of filing or Revising of the earlier-filed would attract a penalty. The Government should have expressly granted Amnesty to all defaulting taxpayers to attract wider compliance with the innovative campaign. It is important that a wider response from taxpayers would save a lot of wasteful litigation & both the time & energy of the department as well as the taxpayers.
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