Decoding IT Notices on High-Value Transactions

IT Notices on High-Value Transactions

Ever received an unexpected email or SMS from the Income Tax (IT) Department # high-value transactions? If the answer is yes, you're not alone. Many people, including our esteemed clients, have found themselves in the same boat. But fret not; this article is your guide to understanding and navigating the intricacies of these communications.

Imagine this: You've diligently filed your Income Tax Return, thinking your financial responsibilities are squared away. Then, out of the blue, you get an e-Campaign notice regarding high-value transactions for the Assessment Year 2023-24. In our client Ram Kumar’s case, it was the sale of securities and mutual fund units worth a whopping Rs 59,70,633. But why is the taxman knocking on your door?

Why Did You Receive This Notice?

These communications are triggered when the Income Tax Department detects high-value transactions that seem inconsistent with the Income Tax Return (ITR) you filed. It's a digital scrutiny mechanism to ensure transparency and accuracy in financial reporting. Factors contributing to such notices include engaging in high-value transactions (like those exceeding Rs. 5 lakh in your trading account), GST-related activities, property or gold purchases, or holding RSU stocks allotted by your company in foreign country shares.

How to Respond: The Roadmap to Compliance

Now, the million-dollar question: What should you do if you find yourself in Ram kumar's shoes? The clock is ticking, with the last date for revising the Income Tax return for Assessment Year 2023-24 set at 31st December 2023. Here's your roadmap:

• Step 1: Login to the e-Filing Portal
  • Visit the Income Tax e-filing Portal and access the "Pending Actions" tab.
• Step 2: Navigate to the Compliance Portal
  • Click on "Compliance Portal" to be redirected, where you'll find the e-Campaign tab.
• Step 3: Provide Feedback on High-Value Transactions
  • Click on the campaign type 'High Value Transactions' and provide feedback by selecting the appropriate option (A to E).
• Step 4: File Revised Income Tax Return (if needed)
  • If the situation demands, upload the revised ITR by selecting the correct form on the e-Filing portal after ensuring all the details are disclosed in the ITR.

Why Act Swiftly?

Furnishing a correct return of income is not just a financial responsibility but a legal duty. It not only contributes to the nation's progress but also reduces the overall cost of compliance. Ignoring or procrastinating on this matter could lead to unwanted consequences.

Unlocking the Numbers: Informative Facts and Figures

Did you know that the Income Tax Department received information on high-value transactions for over a million taxpayers in the current assessment year? The digital era has enabled a more streamlined scrutiny process, ensuring that every taxpayer's financial activities are thoroughly examined.

Your Beacon in the Tax Maze

facing an Income Tax notice might seem daunting, but it's a solvable puzzle. If you've received a notice and need assistance, Prakasha & Co., the leading Legal and Tax Advisory Services in Bangalore, is here to guide you through the maze. Our experts are well-versed in Indian Company law, taxation, and business law, ensuring a seamless resolution to your tax concerns.

Remember, the last date for revising your Income Tax return is approaching fast. Act now, and let's ensure your financial ship sails smoothly through the tax season.

For any further clarification or assistance, reach out to Prakasha & Co., your partners in navigating the complex terrain of tax compliance.