E-Campaign Significant Financial Transactions By Income Tax

Income Tax Department is sending messages to taxpayers regarding payment of advance tax keeping in view transactions incurred during the financial year 2022-23 i.e assessment year 2023-24. The last date to make payment of advance tax is 15/03/2023. Ultimately, this helps to maintain the financial health of the nation and support the various programs and initiatives undertaken by the government. The screenshot of messages received by taxpayers is-

Why department is sending this message?

Income tax department wants to collect timely revenue in form of advance tax. So it is requesting taxpayer to pay appropriate advance tax keeping in view income earned and transactions entered by them. It is advising taxpayers to reconcile the payment of advance tax with income and details of transactions shown in AIS i.e. Annual Information Statement.

How can we see details in AIS?

The department has compliance portal in which transactions relating to TDS/TCS, GST Turnover and GST Purchases, Purchase and Sale of Securities and Mutual Funds, Purchase of Motor Vehicle, Business Receipts and Business Expenses are taken from other website and reporting authorities.

The department has accumulated transactions or data in compliance portal. You have to view the transactions and accordingly pay advance tax. Steps to view Significant Transactions-

1. Login to Income Tax portal using PAN and Password.
2. In dashboard go to pending actions portal and click on compliance portal.
3. Click on e-Campaign (AY 2021-22 onwards) .
4. Click on proceed and You will be redirected to e-Campaign homepage on Compliance Portal.
5. Under e-Campaign list Significant Transactions for AY 2023-24 will be seen and Overall Status will be seen as pending
6. Click on Pending highlighting in red font.
7. Click on Provide Feedback in AIS
8. You will be navigated to AIS view, click on OK
9. You can see the transactions in AIS and TIS
10. You can also click on transaction and provide Feedback as- Information is correct -Income is not taxable -Information is not fully correct -Information relates to other PAN/Year -Information is duplicate/included in other information -Information is denied.
11. You can submit feedback as applicable and acknowledgement will be generated confirming the feedback.

For details regarding the information which shows in your Taxpayer Information Summary (TIS) and Annual Information Statement (AIS),

CLICK HERE

OPINION

As a taxpayer, it is important to keep track of your income and transactions throughout the year in order to pay appropriate advance tax. Advance tax is essentially a method of paying tax on income as and when it is earned or received, instead of waiting until the end of the financial year to pay it all at once.

The due date for paying 100% of the advance tax for the financial year 2022-23 is March 15, 2023.

The Income Tax Department has recently issued an informational message reminding taxpayers to reconcile their income and transactions in the compliance portal and pay the appropriate amount of advance tax. If you fail to pay advance tax, you may be charged interest under sections 234B and 234C of the Income Tax Act.

Section 234B applies when you fail to pay advance tax and end up paying more than 10% of your total tax liability at the time of filing your return. In such a case, you will be charged interest at the rate of 1% per month or part of the month from the due date of the installment(s) till the date of filing the return.

Section 234C applies when you fail to pay advance tax or pay it in an amount less than the prescribed percentage of the total tax liability in each installment. In such a case, you will be charged interest at the rate of 1% per month or part of the month on the shortfall amount from the due date of the installment(s) till the date of actual payment.

Therefore, it is crucial to reconcile your income and transactions and pay the appropriate amount of advance tax to avoid being charged interest under these sections. This will not only save you from paying extra interest but also help you manage your tax liability more efficiently throughout the year.

*** Disclaimer: The above comments do not constitute professional advice. The Author can be reached at camohitjain66@gmail.com