Submit response in the e-compliance portal for Income Tax queries

Ashish M. Shaji

10 Sep, 2022

There have been several taxpayers who have received notices or intimation for non-disclosure of interest on fixed deposits and savings in the income tax returns of Financial Year 2020-21. This is owing to the fact that the income tax department has created an e-compliance portal. In this article, we shall take a look at this e-compliance portal in detail.

E-compliance portal

This portal is dedicated to monitor and evaluate specific compliance related issues. The compliance issue could be a failure to timely file income tax return, failure to pay taxes etc. The identification of the taxpayer is done according to their profile and the information obtained under Annual Information Return, statement of financial transactions etc.

Let’s now know how this portal works.

How does the e-compliance portal work?

This portal enables the income tax department in communicating the issue to the taxpayer and captures response via safe electronic communication.

The department then verifies the online response by the taxpayer, and in case a non-satisfactory response to the issue is captured, then a further query can be raised, or further proceedings can be initiated. Else the matter would be closed.

The issues relating to compliance are categorised into the following categories:

• Non-filing of return

There are a few taxpayer transactions that may trigger the obligation to file income tax return or the liability to pay income tax. In such situation, the income tax department shall issue a notice for non-filing of return.

• High value transactions

There could be certain transactions reported with the income tax department for the specific assessment year that may be inconsistent with the third party’s information. The income tax department can issue a notice for explanation of such high value transactions.

• Significant transactions

The taxpayer may receive a notice to submit a response concerning transactions that are found to be not in line with taxpayer’s profile during a financial year based on scenarios and rules issued by the CBDT.

What a taxpayer must do?

The taxpayer will have to file a revised return after considering the appropriate or missing information or after submitting an online response for the issue generated via compliance portal.

The taxpayer may access the portal by just logging into the income tax e-filing portal. Select either the compliance portal link provided under the My Account or the Compliance tab. In order to access the compliance portal’s homepage directly, you may browse the URL link- www.compliance.insights.gov.in

You may click on the e-campaign-high value transactions tab in order to see information details. Submit the online response by choosing any of the following options:

• Information is correct– In case information is true in all aspects, then you may select the option that the information is correct.
• Information is not entirely correct– In case the information is not fully correct, then you may select this option. You are required to provide additional information like value information etc.
• Information relates to other person or year– If information provided belongs to other person or year, then you may select this option. It happens in case joint account, joint property holding is selected. Taxpayer should provide correct information regarding such person to whom the information belongs.
• Information is duplicate and included in other displayed information– In case information is duplicate and mentioned in any other tab, then taxpayer can select this option.
• Information is denied– In case, as a taxpayer, you are unaware of the information, then you may select this option.

The taxpayer should provide the required response to the issues reflected and submit it online. It might be required to enter text or amount involved or uploading documents or selecting from the dropdown list. 

The taxpayer should also submit the feedback against every information displayed. Moreover, the user may change his response or explanation anytime in the e-compliance portal.

Conclusion

The e-compliance portal is helpful for the income tax department in communicating the issue to the taxpayer and captures response via safe electronic communication. The compliance portal allows for e-verification for displaying compliance issues and such information and captures response on such issues. The objective of this portal is to facilitate taxpayers to validate information available with the income tax department, pay taxes and file income tax returns.

Read our article: How does Income Tax Department trace your High Value Transactions?