Response to Notices from Income Tax Department for confirmation of High Value Transactions

 Now a days many Tax Payers and other non-filers of income tax returns  are receiving many computer generated notices on the basis of various high value transactions from Income Tax Department, here is the brief How to Log in and respond to such notices. No response filing is attracting more penalties and more investigations.

 How to submit response on displayed information?

Following response can be submitted for displayed information on Compliance Portal

   

Easy Steps to make Income Tax Payment

 

The CBDT has changed the procedure for e payment of Income Tax from 1^st Nov, 2022

Here are given easy steps to make e payment of taxes without Log in on the Income Tax portal where all your bank accounts, Aadhar and income details are there.

So e payment of taxes without Log is made easy here in steps:

-       Go to the e-Filing portal homepage and click e-Pay Tax or click on https://eportal.incometax.gov.in/iec/foservices/#/e-pay-tax-prelogin/user-details

-       Enter PAN and Confirm PAN in textbox and enter mobile number

-       Enter the 6-digit OTP received on the mobile number

-       After OTP verification, a success message with PAN and Name will be displayed

-       After selecting the applicable Tax Payment like 100 for Advance Tax, 300 for self Asst Tax and 400 for Demand of Earlier Years click Continue.

-       Select the payment mode though which payment is proposed to be made i.e Net Banking, Debit/ Credit Card, Cheque at Bank Counter or through RTGS/ NEFT

-       Once a payment mode is chosen for a Challan Form and Challan Reference Number (CRN) is generated for it, the payment mode cannot be changed later during payment. 

-       For payment through Net Banking (of authorized banks)

·         Select the Bank Name from the options. (If your bank name is not displayed then select it from the dropdown menu of Other Bank) & click Continue.

·         On the Preview and Make Payment page, verify the payment details and tax break up details and click Pay Now.

·         Read and accept the Terms and Conditions and click Submit to Bank. (the website of the selected Bank where you can log in and make the payment.) 

 

Detailed Procedure step by Step

Step 1: Go to the e-Filing portal homepage and click e-Pay Tax.

 

 

 

 

 

Step 2: On the e-Pay Tax page, enter PAN / TAN and enter it again in the Confirm PAN /

TAN textbox and enter mobile number (available with you). Click Continue.

 

 

 

 

 

Step 3: On the OTP Verification page, enter the 6-digit OTP received on the mobile number entered in Step 2 and click Continue.

Note:

·         OTP will be valid for 15 minutes only.

·         You have 3 attempts to enter the correct OTP.

·         The OTP expiry countdown timer on screen tells you when the OTP will expire.

·         On clicking Resend OTP, a new OTP will be generated and sent.

Step 4: After OTP verification, a success message with entered PAN / TAN and Name will be displayed. Click Continue to proceed.

 

 

Depending on the category, you will be able select from the following Type of Payment:

For PAN holder (Depending on the category of the taxpayer)	·          Income Tax (Advance Tax, Self-Assessment Tax, etc.) ·         Corporation tax (Advance Tax, Self-Assessment Tax, etc.) ·         Equalisation levy / Securities Transactions Tax (STT) / Commodities Transaction Tax (CTT)/Dividend Distribution Tax (DTT) ·         Fee / Other Payments
For TAN holder	·         Pay TDS/TCS ·         Pay Fee (Appeal Fee, Any other Fee)

Sl. No.	Tax Payment Category	Details
1	Income Tax (Advance Tax, Self-Assessment Tax, etc.)	·         Select the Assessment Year from the drop-down options ·         Select the Type of Payment (Minor Head) from the available drop-down options
2	Corporation Tax (Advance Tax, Self-Assessment Tax, etc.)	·         Select the Assessment Year from the drop-down options ·         Select the Type of Payment (Minor Head) from the available drop-down options
3	Demand payment as regular assessment tax (400)	·         Select from the available list of Demand Reference Number (DRNs) available. You can search by DRN or filter by the Assessment Year.

 

Step 7 On the Add Tax Breakup Details page, add the breakup of total amount of tax payment and click Continue.

 

Step 7: You will be required to select the payment mode though which payment is proposed to be made. Five modes of payments are available, as explained below.

Sl. No.	Payment Mode	Step
1	Tax Payment through Net Banking	Proceed
2	Tax Payment through Debit Card	Proceed
3	Pay at the Bank Counter	Proceed
4	Tax Payment through RTGS / NEFT	Proceed
5	Tax Payment through Payment Gateway	Proceed

Note: Once a payment mode is chosen for a Challan Form and Challan Reference Number (CRN) is generated for it, the payment mode cannot be changed later during payment. 

For payment through Net Banking (of authorized banks)

A. On the Select Payment Mode page, select the Net Banking menu and select the Bank Name from the options. (If your bank name is not displayed as one of the radio options, select it from the dropdown menu of Other Bank) & click Continue.
 

Note: This facility is available for Authorized Banks only. If your bank is not authorized bank, RTGS / NEFT or Payment Gateway mode can be selected for tax payment.

B. On the Preview and Make Payment page, verify the payment details and tax break up details and click Pay Now.
 

C. Read and accept the Terms and Conditions and click Submit to Bank. (You will be redirected to the website of the selected Bank where you can log in and make the payment.)
 

E Pay Tax Without Login in Easy Steps

 The CBDT has changed the procedure for e payment of Income Tax from 1^st Nov, 2022

Here are given easy steps to make e payment of taxes without Log in on the Income Tax portal where all your bank accounts, Aadhar and income details are there.

So e payment of taxes without Login being safer than log in is made easy here in steps:

-       Go to the e-Filing portal homepage and click e-Pay Tax or click on https://eportal.incometax.gov.in/iec/foservices/#/e-pay-tax-prelogin/user-details

-       Enter PAN and Confirm PAN in textbox and enter mobile number

-       Enter the 6-digit OTP received on the mobile number

-       After OTP verification, a success message with PAN and Name will be displayed

-       After selecting the applicable Tax Payment like 100 for Advance Tax, 300 for self Asst Tax and 400 for Demand of Earlier Years click Continue.

-       Select the payment mode though which payment is proposed to be made i.e Net Banking, Debit/ Credit Card, Cheque at Bank Counter or through RTGS/ NEFT

 

-       Once a payment mode is chosen for a Challan Form and Challan Reference Number (CRN) is generated for it, the payment mode cannot be changed later during payment. 

-       For payment through Net Banking (of authorized banks)

·         Select the Bank Name from the options. (If your bank name is not displayed then select it from the dropdown menu of Other Bank) & click Continue.

·         On the Preview and Make Payment page, verify the payment details and tax break up details and click Pay Now.

    Read and accept the Terms and Conditions and click Submit to Bank. (the website of the selected Bank        where you can log in and make the payment.)

One can make TDS payment by following the link

https://eportal.incometax.gov.in/iec/foservices/#/e-pay-tax-prelogin/user-details

Strict Penalties on Cash Receipts on sale of Goods & Services - Under Section 269ST

 

PENALTY  SECTION 271DA ON CASH RECEIPT –SEC. 269ST  OF INCOME TAX ACT

Sec 269ST provides- No person should receive  Rs. 2 lacs or more in cash ( i.e over Rs. 199000) (a) on a day in aggregate from the same person (b) in respect of a single transaction (c) in respect of transactions related to same event or occasion from a person.

Penalty : Sec, 271DA . if a Person receives any sum in contravention of the Provision of Section 269ST, he shall be Liable to  Penalty = Amount of such  receipt.

Who will pay Penalty ?: Any such receiver getting cash.

Examples:

S.No.	Situation	Receiver contravening Sec 269T (Yes/No)	Penalty on receiver(s) under Sec 271DA (Rs)- Reason
A
1 a	For SALE OF GOODS OR SERVICES:  Jeweller sells goods worth Rs. 500000 to B as under against : a)       Bill No. 1 Rs. 150000 on 01.04.22 b)      Bill No. 3 Rs. 200000 on 05.4.22 c)       Bill No. 6 Rs. 50000 on 06.4.22 d)      Bill No. 8 Rs. 100000 on 10.4.22 but Jeweeller receives 500000 in cash against all 4 bills at different times on a single day ( 11.04.22).	Yes	500000
1.    b	If in above situation S receives cash on those 4 days of the billings .	Yes on 05.4.22	Rs. 2 lac  ( exceeds Rs. 199999.99 on 05.04.22)
2.	S sells goods worth Rs. 250000 against bill No. 01 and also receives cash  Rs. 250000	Yes	250000
3.	S sells goods worth Rs. 500000 Billed on 4.3.21 ( or for same Vehicle sold )  but received in cash as under: a)    On Day 1 – 150000 on 10.5.22 b)    On Day 2 – 250000 on 12.5.22 c)    On Day 3 – 100000 on 14.5.22	Yes	Rs. 5 lac (because same bill or same car)
4.	S engages B for carrying following Party function: a)    Decoration and lights– 150000 b)    Food catering – 250000 c)    Tent – 250000 d)    Music – 100000 Pays entire amount in cash at different dates each instalment being lower than 2 lakhs	Yes	Rs.750000 (since the transactions relate to one event )
5.	S receives cash as under against : a)    Bill No. 001 from A – 100000 b)    Bill No. 002 From B – 150000 c)    Bill No. 003 From C – 100000 Entire sum received on the same day.	No .	Nil ( because not from same customer )
6.	S sells goods worth Rs. 300000 to C Ltd and collect cash under against single Purchase order dated 4.4.21 but on different dates  or for same car sold : a)    On Day 1 on Bill No. 1- 150000 b)    On  Day 2 on Bill No. 2- 150000	Yes	RS. 300000 Receipt of single Transaction/ single purchase order/ Same Car
7.	S sells goods worth Rs. 500000 to B- a)    Against Bill No. 1 – 150000 on day 1 b)    Against Bill No. 2 – 100000 on day 3 c)    Against Bill No. 3 – 250000 on day 6 And collects entire on same day say day 7	Yes	Rs. 500000
8.	Car Owner receives Cash Rs. 3 lac from Dealer for sale and Rs. 2 lac by cheque. Dealer Sells car for Rs. 550000 in Cash.	Yes	Car owner Rs. 3 lac. Dealer Rs. 550000
9.	Of Dealer Rs. 4 lac in cash and 1.5 lac by Bank trf/ account payee cheque in above case	YES	Rs.4 lac Penalty on  Dealer
10.	CASH GIFT RECEIVED -A accept cash gift Rs. 250000 from his wife	Yes	Rs. 250000 Penalty on husband
11.	TOUR ADVANCE: A gives Rs. 4 lac to B going on office tour  from Delhi to Chennai and instructed to deliver the sum to C.	Yes	Rs. 4 lac *2 =800000 ( Both B and C liable to pay penalty Rs 4 lac each)