Submit response in the e-compliance portal for IT queries
Tax Exemption

Many taxpayers have received notices or intimation for non-disclosure of interest on savings and fixed deposits in the income tax returns of the financial year 2020-21. It is due to the income tax department that has created an e-compliance portal that is dedicated to monitoring and evaluating specific compliance-related issues. The compliance issue can be a failure to file the income tax return in time, failure to pay taxes, etc. The identification of the taxpayer is made as per their profile and the information received under Annual Information Return (AIR), Statement of Financial Transactions (SFT), Securities Transaction Tax (STT), etc. 

How does the e-compliance portal work

The portal enables the income tax department to communicate the issue to the taxpayer and captures response through secured electronic communication. 

The income tax department then verifies the online response submitted by the taxpayer. If a non-satisfactory response to the issue is captured, a further query may be raised, or further proceedings may be initiated. Otherwise, the matter will be closed.

The compliance issues are categorised under three categories:

  • Non-filing of Return: Certain taxpayer transactions may trigger the obligation to file the income tax return or the liability to pay income tax. In such a case, the income tax department will issue a notice for the non-filing of return. 
  • High-Value Transactions: Certain transactions reported with the income tax department for the specific assessment year may be inconsistent with the third party’s information. The income tax department may issue a notice for an explanation of such high-value transactions in detail.
  • Significant transactions: On any transaction found to be not in line with the taxpayer’s profile during a financial year based on the scenarios and rules issued by the Central Board of Direct Taxes (CBDT), the taxpayer will receive a notice to submit a response concerning such transactions.

What taxpayer should do

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

The taxpayer can access the compliance portal by logging into the income tax e-filing portal. Click on either the ‘Compliance portal’ link available under ‘My Account’ or the ‘Compliance’ tab. To directly access the compliance portal’s home page, you can browse the URL link www.compliance.insights.gov.in.

The taxpayer must provide the necessary response to the issues displayed and submit it online. It may require entering text or amount involved or uploading documents, or selecting from the dropdown list options. 

The taxpayer also has to submit the feedback against each information displayed. Also, the user can change his response or explanation any number of times in the e-compliance portal. 

For any clarifications/feedback on the topic, please contact the writer at namita.shah@cleartax.in

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