Compliance portal was launched around 2-3 years back and assessee used to receive various notices on compliance portal.
In the initial stage it was used to send notices to the assessee if they had some transaction above the threshold limit but had not filed their income tax return.
Later, assessee started receiving notices for having high value transaction in Shares and the assessee had to accept or reject the share transaction.
Now accepting such transaction doesn’t mean that you don’t have to file your income tax return or anything. This is just an additional compliance which Income tax department tells is for the betterment of assessee so that he is aware about the information department has in his name.
However this is just increasing burden on assessee and making him worry more and afraid of Income tax department. Simultaneously it is increasing the burden of tax practitioners and since there is no penalty as such many people don’t even comply with this, but not complying with this might lead to assessment notice from Income tax department.
Later, from FY 2019-20 Income tax department had started reflecting GSTR 3B data in Form 26AS of assessee and now Income tax department has started reflecting GSTR 1 data of assessee in compliance portal and started sending messages to assessee regarding the same as High value transaction.
Thus, the messages of high value transaction which people are receiving is nothing but their details of purchase and sale as reflected in GSTR 1 filed by assessee or its supplier and asseessee has to look at each and every transaction and accept or reject the same.
It is important to mention that under such high value transaction they are also including Rs. 1000 to Rs. 2000 invoices.
This is just increasing burden of assessee as he is already filing Income tax return and GST return and now he has to also reply to such compliance notice but department is saying that such notices are just being sent to make assessee aware about it’s transaction so that it files correct return and no assessment is being initiated for same.
In addition to GSTR 1 details details of interest earned from bank or financial institution is also incorporated in the compliance notice which was already a part of Form 26AS and now is a part of SFT transaction report. Thus, Income tax department is continuously collecting and throwing information on assessee and is moving forward towards pre filled ITR.
Hence, now it is on you whether you wish to reply to such compliance notices or not.
Below is the sample of a notice which you could see on Compliance portal:
If you wish to book an online consultation with our expert CLICK HERE.