For each assessee filing the income tax returns is important. It ensures compliance with the norms and also assists in transparent financial transactions. Certain individuals have found out that they are in a position where they have not filed their Income tax return in the former years, directing to the income tax notices.
The blog discusses the reasons for obtaining non-filing ITR notices, the capability consequences, and the process that people can follow to deal with such cases.
A List of Reasons for Not Filing of ITR
Lack of Attention: Certain people may not know their obligation to file ITR, particularly when their profits fall below the taxable limit.
Leadership: In certain cases when the assessees forget to file their Income tax returns because of their busy schedule or due to some other private causes.
Complex Tax System: For certain people, the complexity of the tax might be the cause.
Financial Challenges: People who face financial issues may forget to report their Income tax returns either due to the lack of assets or worry about the tax liabilities ability.
Did You Receive a Non-Filing of ITR Message
Attention Taxpayer (XXXXX5265X) As in keeping with statistics to be had on your case on the Compliance Portal of the Income Tax Department, you were supposed to file your ITR for A.Y. 2023-24 however the ITR has not yet been filed. Please submit your ITR or put up an online response below the “e-Campaign” tab on the “Compliance Portal”. After login to the e-filing Portal go to the “Pending Actions” tab and click on “Compliance Portal”.
On the Compliance Portal, navigate to the “e-Campaign tab” and go to campaign type “Non-filers” to submit a response. Please ignore if ITR has already been filed. – Income Tax Department.
If you’ve received an SMS via the Income Tax department you need to file your Income Tax Return (ITR), it’s not just a casual reminder. This message shows that your income is more than the Rs 5 lakh threshold or that there are transactions present in the Annual Information Statement (AIS).
What Does the Term AIS Signify?
AIS is a file that summarises the financial transactions of 12 months. It consists of distinct financial transactions that have interest accrual, dividends, share market transactions, mutual fund transactions, and details associated with foreign places’ remittances.
The Annual Information Statement objective is to consolidate and furnish a summary of distinct financial transactions that can affect the income tax liability of the assessees. The same declaration is important for the people to move-verify the data available with the tax council and ensure accurate reporting of their tax returns earnings.
It is important to take action on obtaining a notice for the non-filing of the income tax returns. Below mentioned are some steps to address the case-
Examine the Notice: Read the notice to acknowledge the unique problems raised by the income tax department.
Collect Documents: Gather all documents along with income statements, financial institution statements, and investment information for the years in question.
File your ITR: Through submitting income details, compute your tax liability, and after the final check submit your ITR.
Respond to the e-filing Portal: Once you’ve successfully filed your ITR, log in to the e-filing portal. Navigate through Pending Actions > Compliance Portal > e-Campaign > Non-Filers. As you have already filed your return, choose the “ITR has been filed” response, furnish the acknowledgement number & date of filing, and submit.
Closure: The main source of stress is the income tax notices for the non-filing of the ITRs, however precise action on time can solve the situation. The people need to learn about their tax liabilities. Proactive compliance does not merely prevent financial penalties but indeed contributes towards a more transparent and efficient tax regime.