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Responding to a Notice Issued for Non-Compliance or Non Filing of Returns

It is conceivable that in a specific year you don’t have income surpassing the prescribed threshold limit of taxable income. In such an example, it isn’t required to file an Income tax return. However, it is important to file an income tax return regardless if the income doesn’t surpass the taxable limit. This is on the grounds that the Income Tax Department can issue a notice U/S 143(2) of the income tax act, in an instance of non-compliance. In this article, we will find out about how to react to a notice issued for not filing income tax returns.

How the Income Tax Department Tracks Non-compliance and Non-filing of Returns?

To take swift action against non-filers, the income tax department has introduced a Non-filers Monitoring System (NMS). Under this system, all the non-filers are notified by SMS, messages, and letters in bunches.

The assessee can view the details of the same on the income tax e-filing gateway by signing into the account. Moreover, he/she can also file a response on the same.

Responding to the Notice for Non-Filing of Return

Step 1: Open https://www.incometaxindiaefiling.gov.in/home.

Step 2: Log in to the portal using the valid credential.

Step 3: After signing in, you will see a Compliance tab on the dashboard. It gives two alternatives:

  • View and submit my compliance: This will show all the details related to the assessment year for which the ITR has not been filed or department needs any third party data.
  • View my submission

Step 4: The taxpayer can choose the accompanying alternatives:

  • The return has been filed: The assessee can use this option in case he/she gets a notice despite filing the ITR. However, it shall be noted that the assessee needs to mention the acknowledgment number or date of filing the Income Tax Return.
  • The return has not been filed: The assessee can use this option in case if
  1. ITR is under preparation
  2. The business has been shut
  3. No taxable income
  4. Others (on choosing the others tab, it obligatory to provide a remark)

Step 5: On filling in all the pertinent data, click on the submit tab.

Responding to the Notice for Related Information

Related information is concerning the diverse third party data received in case if the taxpayers are shown separately.

Step 1: Open https://www.incometaxindiaefiling.gov.in/home.

Step 2: Log in to the portal using the valid credential.

Step 3: After signing in, you will see a Compliance tab on the dashboard. It gives two alternatives:

  • View and submit my compliance: This will show all the details related to the assessment year for which the ITR has not been filed or department needs any third party data.
  • View my submission

Step 4: The taxpayer can pick one of the accompanying alternatives from the pull-down bar:

  • Self-Investment or expenditure is out of exempt income
  • Self-Investment or expenditure is out of foreign income
  • Self-Investment or expenditure is out of savings
  • Self-Investment or expenditure is out of gifts or loans from others
  • Self-Income from the exchange is excluded
  • Self-Income from the exchange is not above the taxable limit
  • Self-Income from transaction-related to different assessment years.
  • Self-Not Known
  • Other PAN
  • Not Known
  • I need more data

Step 5: On choosing the choice which best suits your response, click on the Submit button.

Preparing the Response

The response submitted online by the taxpayers will be cross verified by the Income Tax Department. The case will be shut when the ITD finds the response satisfactory. The taxpayer can check the status by signing in to the e-filing gateway.