How to handle e-Campaign, High Value Transaction Notices?

This document covers

1. SMS Message Types
2. The Reasons
3. The Actions to be taken
4. The Tools

1. SMS Message Types

2. The Reasons

The reasons for e-campaign or High Value transaction notices are non-filing of Income Tax Returns or non-disclosure of certain transactions in the income tax return filed. Following are some of the transactions which might attract notices

1. Cash Deposit in Savings Account
2. Purchase or Sale of Immovable Property (House, Land, Apartment etc.)
3. Term Deposits
4. Purchase of Foreign Currency
5. Purchase of Shares / Mutual Funds / Bonds / Debentures
6. Sale of Shares / Mutual Funds /Bonds / Debentures

3. The Actions to be taken

Typically you may receive the e-Campaign alerts or High Value Transaction (SFT) notices only after several months from the original transaction event. Hence, the actions to be taken are based on whether a response or revision is possible or not.

3.1 Revised / Belated IT Returns are possible

1. File the Income Tax Return: If there is time limit, file the belated return/revised return including all transactions reported by Income Tax Department and pay the relevant taxes
2. Submit the Response: Login to https://www.incometax.gov.in/iec/foportal , Go to Pending actions and click on e -campaign (from AY 2021-22 onwards). Now provide the response for Non-Filing of Tax Returns and provide the response whether the information is correct or not in AIS (Annual Information Statement)

3.2 Revised / Belated IT Return timeline has expired

1. Prepare the Tax Computation: For FY 2020-21 and check whether you have any tax due or tax refund. If there is any tax due, Kindly make the challan payment and keep the challan in your records. You can file the tax return if window opens in future
2. Submit the Response: Login to https://www.incometax.gov.in/iec/foportal, Go to Pending actions and click on e -campaign (from AY 2021-22 onwards). Now provide the response for Non-Filing of Tax Returns and provide the response whether the information is correct or not in AIS (Annual Information Statement)

4. The Tools

You can check the e-Campaign alerts from Mobile SMS and the same should be available in the income tax portal after navigating to "Compliance Portal" and select "e-Campaign" section. The other tools like Form 26AS and the AIS statements would give you a complete picture of the activity recorded by the income tax departments.