In past few days, various assessee have received messages from Income tax department to check certain Significant financial transaction on Income tax portal and pay Advance tax accordingly.
Message received from Income tax department is as under:
“Attention XXXXXX XXXXIONS PRIVATE LIMITED (XXXXX4645X)
Income Tax Department has received information about certain significant financial transactions relating to FY 2023-24 (AY 2024-25). Please view transactions under e-Campaign tab on Compliance Portal and remember to pay appropriate Advance Tax. You can access Compliance Portal by login to the e-filing Portal (https://www.incometax.gov.in), and clicking ”Compliance Portal” available under ”Pending Actions” tab. On Compliance Portal, click e-Campaign tab to view Significant Transactions. – ITD”
The above message was sent to assessee with 2 objectives:
1. To check the financial transactions reported in their name for the financial year till date so that they can calculate and plan their tax.
2. To ask people to pay advance tax as the due date for making payment of last installment of advance tax is near i.e. 15th March.
However, when people went and checked their AIS, they found that the amount of sale price unit mentioned in the AIS, for any shares was incorrect and they have either multiplied the price by unit to 100 or either mentioned the total sale price as sale price per unit.
Hence, people were panicked to see 10 times or 100 times to transaction of what they had already done and now when assessee is again downloading AIS they are seeing that in some cases the entire transactions have been deleted and this could be because the ministry has also asked such reporting entity to correct the details submitted at the earliest.
Thus, it is advisable to currently not respond to any such reporting in AIS for AY 2024-25 and file tax based on the actual transaction done by assessee during the year.
Other than resident senior citizen who don’t have business income in their income tax return, all other types of assessee are liable for payment of advance tax if their total tax liability after considering TDS credit is more than Rs.10,000/-.
If an assessee does not Advance tax within due time they could be liable for 1% interest per month under Section 234B and 234C of the Income tax act.
Therefore, it is advisable to each and every assessee to book a consultation with an expert and calculate their advance tax and pay the same before 15th March.
You can book phone consultation/ assistance online with expert as mentioned below:
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