Simplified Laws Guide to Taxation and Legal Concern The Income Tax Department has been receiving information about large value transactions through Annual Information Return (AIR) without a valid PAN.
In order to bring tax evaders under the tax net, the Income Tax department has sent letters request for linking of large value transactions to a valid PAN. These letters are sent to those individuals who have lorge value transactions such as a deposit of cash Rs. 10,00,000/- or more into savings account, Sale or purchase of property more than Rs. 30,00,000/- Investment in Mutual Fund of Rs. 2,00,000 or more etc.
Annual Information Report (AIR ) records the list of entities and taxpayers who have made such “high value financial transactions” during the particular financial year.
For the convenience of the parties to whom these letters are addressed, a new functionality on e-filing portal has been developed wherein they can own up transactions and provide structured response electronically.
This functionality is to facilitate the user to view and submit response to Non-PAN lorge value Transaction. Those who receive the letters can login into their e-filing website and link transaction with their PAN by quoting a Unique Transaction Sequence Number in the letter. The new functionality helps the user to confirm whether the transaction is related to his PAN or not.
What happens if I ignore notice received for Non-PAN Large Value Transactions?
Ignoring the IT letter and failing to link your transactions with PAN may lead to further trouble with the Income-tax authorities and If no response is electronically submitted within 15 days of receipt of this letter, appropriate proceedings under Income Tax Act, 1961 may be initiated. The Income Tax department will send you a formal notice, followed by summons requiring personal attendance to explain the position. Continue to ignore Income tax notice can also result in summons and penalty and in extreme cases the law also provides for imprisonment.
The Income Tax department will send you a formal notice, followed by summons requiring personal attendance to explain the position. Continue to ignore Income tax notice can also result in summons and penalty and in extreme cases the law also provides for imprisonment.
Procedure to Submit response to Non – PAN Transaction
Step 1: In e-Filing Homepage, Click on “Login Here”
Step 2: Post login, go to Compliance ^ Non – PAN transaction or click on Non PAN Transaction under Quick Link
Step 3: Enter the Transaction Sequence Number (TSN) in the text box and click on “Search” button in order to view the transaction details.
Step 4: Transaction Confirmation screen appears and the transaction details related to the TSN
Step 5: If the transaction details are related to the user, click on “I believe that this transaction relates to me” and click on Submit to View Further Details button
Step 6: Upon Submit to view further details, additional details will appear
Step 7: User can choose the relevant option and submit the response by clicking on Submit button
For detailed steps, you can refer User Manual – Submit/View Response to Non-PAN Transaction
Submission of electronic response will be treated as response to the letter sent by income tax department. Taxpayer need not required to visit Income tax office or send any letter or document in response to the letter. In case you make a mistake in submission of response, you have option to revise it by login to e-filing portal.
In case if you have received such notice please share your experience in the comment section below. We, Tax consultants in Bangalore help you to address the issue if any.
