Got tax dept SMS on excessive worth transaction mismatch? Here is learn how to cope with it

NEW DELHI: The earnings tax division has despatched SMSes to taxpayers on 29 March, associated to mismatches between earnings tax returns (ITR) filed for FY2019-20 and high-value transaction. The division has requested taxpayers to both file a revised ITR by at present or reply to the question on the compliance portal by 31 March.

Three of the chartered accountants Mint spoke to confirmed that their shoppers have acquired such SMSes from the tax division.

Tarun Kumar, a Delhi-based chartered accountant, mentioned a few of his shoppers have acquired this SMS. “The SMS has brought on panic amongst taxpayers because the deadline to answer could be very shorthand as thirty first March is the final date to file a revised return. Taxpayers successfully had two days to answer or file revised returns. It can be troublesome for individuals to do it with out skilled assist.”

Most of those queries are associated to the curiosity on mounted deposits (FD), saving accounts and debentures or bonds.

The SMS acknowledged, “Attention xxxxxxxxxx (XXXXX5362X),The Income Tax Department has recognized excessive worth info which doesn’t seem like according to the Income Tax Return filed for Assessment Year 2020-21 (regarding FY 2019-20). Please revise ITR / submit on-line response beneath e-Campaign tab on Compliance Portal (CP). Access CP by logging into the e-filing portal and clicking on ‘Compliance Portal’ hyperlink beneath ‘My Account’ or ‘Compliance’ tab – ITD.”

Banks and different monetary establishments reminiscent of mutual funds, corporations and so forth are required to ship info associated to the transactions exceeding a sure threshold to the tax division.

In case of financial savings checking account, curiosity of as much as Rs10,000 from all financial institution accounts of a taxpayer is exempt from tax however taxpayers are required to reveal it. In case they haven’t they might get a discover from the division.

As banks had been closed on Holi, persons are going through problem getting knowledge from banks. Also, there isn’t a public dealing by banks on 31 March. This might result in issues for taxpayers in replying in case there’s a mismatch, and so they want some info from their banks.

Prakash Hegde, a Bengaluru-based Chartered Accountant, mentioned a few of his shoppers have acquired this SMS. As per the Income Tax Department they haven’t disclosed their FD curiosity. “The Income Tax Act permits the taxpayers to reveal the curiosity from FD both within the 12 months by which it’s accrued or the 12 months by which it will likely be acquired. My shoppers have chosen the second possibility subsequently we’ll reply to the tax division’s question as a substitute of submitting a revised return.”

Some consultants really feel it would assist taxpayers right the error if they’ve achieved as at present is the final date to file revised returns for the monetary 12 months 2019-20.

“It is an efficient factor that the Income Tax Department is alerting the taxpayers. By doing this they’re giving the taxpayers an opportunity to rectify the error at this stage and keep away from scrutiny evaluation,” mentioned Gautam Nayak, a Mumbai-based chartered accountant.

In case you’ve got this SMS, verify your financial institution assertion and different paperwork to see if there’s any mismatch or not. In case there isn’t a mismatch or partial mismatch you possibly can reply on the compliance portal.

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