Honoring the Honest by Income Tax Department

Those who have filed their Income Tax Return for AY 2020-21 would have got a mail from the IT Department with the above image mentioning “Honoring the Honest-Use/Share the Proud Filer Badge

Hope you remember, a few months back, the Central Government launched a Scheme called Honoring the Honest. The above initiative is one such goodie! Wearing a Pride Badge through Facebook Page.

After getting this mail, I got the following queries –

  • Does this mean that the Tax Department has accepted our return?
  • Does this mean that there is no scrutiny assessment in my case?

Unfortunately, this mail can’t be a reason to jump in joy! This mail confirms that you have filed an IT Return and acknowledges that – (a) They are proud of you as an honest taxpayer (b) Be proud as an honest taxpayer, wear the badge through Facebook as per instructions.

Practically, this mail has no relevance to the accuracy of the data or acceptance of the return filed by you.

Intimation u/s 143(1) – You can expect another mail from the IT department, followed by an SMS stating – ITR for AY 2020-21 and PAN BCKxxxxx1E has been processed at CPC. Intimation u/s 143(1) has been sent to your registered email ID. This Intimation for FY 2019-20 (The return being filed now i.e., Nov-December/or before 10th January 2021), has to come within 31st March 2022. Please note it is a computer-generated, auto processed document.

If you don’t receive any intimation by March 2022, then it means the Tax department is not proposing any changes or modifications to the facts and figures submitted by you.

Notice u/s 143(2) – This notice will come within 6 months from the end of the Assessment Year. This means, for FY 2019-20 (AY 2020-21), you can expect the notice on or before 30th September 2021.

Does this mean that till FY 2018-19, no more notices can come from the department? The answer is

  • Till FY 2017-18 – No more notices will come for scrutiny under Sec 143(2).
  • For FY 2018-19 – The due date of serving the Notice was 30/9/2020, but they have extended it to 31/3/2021 (The window is still open!!)

For FY 2019-20 – The due date of serving the Notice is 30/9/2021

So, friends, feel-good emails from the Tax department or wearing a Proud Filer Badge does not absolve from Scrutiny Assessment. It is a Computer Selection Process, based on selected criteria. Your case may be flagged, not sure. Better to be safe and get hold of all the required and relevant documents to protect yourself.


B E Kumar Prasad

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About B E Kumar Prasad

B E Kumar Prasad
He is a Practicing Chartered Accountant in Bengaluru, India. He has 28+ years of experience in income tax, business setup, and NRI matters. He is also an Insolvency Professional, Registered Valuer (F&SA) and Social Auditor.Prasad welcomes your comments and questions. Please email him at simplifiedlaws20@gmail.com

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