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It is possible that in a certain year you do not have income exceeding the threshold limit of taxable income. In such an instance it is not mandatory to file a tax return. However, it is always advisable to file a return even if the income does not exceed the taxable income.

If for any reason you do not file your tax return or there is non-compliance the income tax department will issue a notice under section 143(2) of the income tax act.

1. Overview

The income tax department has initiated a Non-filers Monitoring System (NMS) project to take a quick action on non-filers of income tax returns, with potential tax liabilities. The identified non-filers are informed by SMS, e-mails and letters in batches.

In case a notice is issued, the assessee can view detailed information on the income tax e-filing portal by logging into the account and can also file a response on the portal.

2. Responding to the Notice for Non-Filing of Return

Step 1

Login to your account by clicking on https://www.incometaxindiaefiling.gov.in/home and entering the login ID and password.

Step 2

On successfully logging in,there is a compliance tab on the dashboard. It provides two options:

  • View  and submit my compliance
  • View my submission

The ‘view and submit my compliance’ tab will show all the details for the assessment years for which

  • the return has not been filed as per the department record;or
  • The department requires third party information
Step 3

The taxpayer can choose from the following options:

  • Return has been filed
  • Return has not been filed

In case the return has been filed but still the department issues a notice, the taxpayer can click on return has been filed and provide for the corresponding information like acknowledgement number, date of filing the return. In case the return has been e-filed, the details will automatically update.

If the taxpayer chooses the option that it has not filed then the taxpayer must select from the dropdown options:

  • Return under preparation;
  • Business has been closed
  • No taxable income
  • Others (on selecting the others tab, it mandatory to file remarks)
Step 4

On filling in all the relevant information, click on the ‘Submit’ tab.

Related information is in reference to the different third party information received in case of taxpayers is shown separately.

Step 1

Login to your account by clicking on https://www.incometaxindiaefiling.gov.in/home and entering the login ID and password.

Step 2

On successfully logging in,there is a compliance tab on the dashboard. It provides two options:

  • View  and submit my compliance
  • View my submission

The ‘view and submit my compliance’ tab will show all the details for the assessment years for which

  • the return has not been filed as per the department record;or
  • The department requires third party information
Step 3

The taxpayer can choose one of the following options from the dropdown:

  • Self-Investment/ expenditure is out of exempt income
  • Self-Investment/ expenditure is out of accumulated savings
  • Self-Investment/ expenditure is out of gifts/ loans from others
  • Self-Investment/ expenditure is out of foreign income
  • Self-Income from transaction is exempt
  • Self-Income from transaction is below taxable limit
  • Self-Income from transaction relate to different AY
  • Self-Not Known
  • Other PAN
  • Not Known
  • I need more information
Step 4

On selecting the option which best suits your response, click on ‘Submit’.

4. Processing the Response

The responses submitted online by the taxpayers will be verified by the ITD and if found satisfactory, the case will be closed.

The taxpayer can check the updated status by logging in to the e-filing portal. In case the taxpayer does not file Income Tax return, the information will be pushed to the field formation for further action.

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