How to give reply of intimation of high-value information on Income Tax Compliance Portal

These days many Taxpayers are getting this message:

Attention XYZ (XXXXX1900X), The Income Tax Department has identified high-value information which does not appear to be in line with the Income Tax Return filed for Assessment Year 2020-21 (relating to FY 2019-20). Please revise ITR / submit online response under the e-Campaign tab on Compliance Portal (CP). Access CP by logging into the e-filing portal and clicking on the ‘Compliance Portal’ link under ‘My Account’ or ‘Compliance’ tab – ITD.

This article deals with how can you give reply of such notices.

Now, what is a High Value Transaction?

These transactions are transactions of high monetary value. They are reported to Income Tax Department when Form 61A or commonly called Statement of Financial Transaction is filed by various entities like banks, post offices, companies, etc.

Why these kinds of Transactions are reported?

The transactions that are not in line with the profile of taxpayers are required to be reported.

• Non-Filing of ITR: You have a transaction on which TDS has been deducted, but ITR has not been filed. Or you are having potential Tax Liability is you have not filed ITR.
• Tax Evasion: There is a transaction on which taxpayer is having potential Tax Liability and that transaction is not disclosed in ITR.

Department has various means through which they get information, for example:

1. Sale Related Transactions coming in Form GSTR-1 or GSTR-3B:

If high value of Sales are reported in your GSTR-1, Advance Tax is required to be paid if you have Taxable Income.

2. TDS Deducted on income:

If TDS is deducted in certain Income, then Advance Tax is required to be paid if you have Taxable Income.

3. Purchase/ Sale of Immovable Property:

Registrar is required to report transactions related to Purchase/ Sale of Immovable Property of more than Rs. 30 Lakh. In case of a sale, Advance Tax is required to be paid on the capital gain income if any. In the case of Purchase, the income tax department may ask you your source of income, especially if you are a Non-Filler of ITR.

4. Purchase/ Sale of Movable Property:

Transactions related to the Purchase of Luxury cars, Gold, etc. are also reported. In the future, the department may ask you the source of Income in case of purchase of such items.

5. Money Withdrawn from Bank Account:

Provisions of TDS are applicable u/s 194 in case of money withdrawn from Bank Account. The same will come in the purview of your High-Value Transaction.

Click here to view TDS rate Chart

Click here to view TCS Rate Chart

6. Sale and Purchase of Goods of more than Rs. 50 Lakh will also be considered as a high-value transaction.

TDS ON PURCHASE OF GOODS EXCEEDING RS 50 LAKH

TCS ON SALE OF GOODS EXCEEDING RS 50 LAKH

7. Cash Deposit in Bank:

Cash deposits aggregating to ten lakh rupees or more in a financial year, in one or more accounts are considered as High-Value Transactions.

CASH RECEIPT ABOVE RS 2 LAKHS IN INCOME TAX TREATMENT

8. Fixed Deposit in Bank:

• One or more time deposits/ Fixed Deposit of a person aggregating to ten lakh rupees or more in a financial year of a person are considered as High-Value Transactions.
• Time deposits made through renewal of another time deposit is not a High-Value Transaction.

9. Credit Card payments:

• Cash Payments of one lakh rupees or more
• Other than Cash Payments of ten lakh rupees or more

How to give a reply of intimation of High-Value Transactions?

Steps of giving reply to the intimation of High-Value Transactions:

Step 1: Log in to Income Tax Portal

Step 2: Go to Compliance Tab

Step 3: Once you click on the Compliance Portal tab, you will be directed to Compliance Portal.

 Once you select the transactions, You can give Individual Response or Bulk Response:

Bulk Response:

Response for all the transactions can be any of the following:

1. Information is correct
2. Information is not fully correct
3. Information relates to other Person / Year
4. Information is duplicate/included in other displayed information
5. Not aware of this Information

Individual Response:

Response for the specific individual transaction can be any of the following:

1. Information is correct
2. Information is not fully correct
3. Information relates to other Person / Year
4. Information is duplicate/included in other displayed information
5. Not aware of this Information