A query by the ITD may be raised on expenditures like family functions, foreign travel, foreign education, expensive hotels/restaurants, etc. These are some expenses where income gets utilized. The taxpayers who have spent a significant amount on such expenditures have to quote their PANs in such transactions. Some of the above-mentioned expenses are to be reported as well through AIR or SFT. Expenditures are an indicator of assessee’s lifestyle and standard of living. Any unexplained expenditure can also be deemed to tax in hands of the assessee for that Financial Year.
Taxpayers who receive an SMS or any communication via call or email from ITD are likely to face some verification issues in their ITRs. Taxpayers can receive the SMS for three reasons:
|A1||Correct Information Value||Amount + Remarks|
|A2||Out of earlier income or savings||Amount + Remarks|
|A3||Out of receipts exempt from tax||Exempt income-wise list|
|A4||Received from identifiable persons (without PAN)||PAN wise list|
|A5||Received from identifiable persons (without PAN)||Person wise list|
|A6||Received from un-identifiable persons||Nature of transaction wise list|
|A7||Others||Amount + Remarks|
|A8||Unexplained amount||A1- (A2+A3+A4+A5+A6+A7)|
The total of all the amount paid for the purchase of the property has to be mentioned here. The purchase amount and all the expenses like stamp duty etc. In the case of co-ownership, the taxpayer should mention his/her share of investment and give details like name, PAN and share of other co-owners under the remarks section.
If any part of the investment or expenditure is made out of earlier income or savings then it should be mentioned with the amount under this category. Suitable remarks are also required under the remarks section.
Available exemptions are listed below in the drop-down list. After choosing the relevant exemption the value of the receipt will be determined.
If this field is selected you will be displayed the following rows:
If any amount is received from an identifiable person who holds a valid PAN, then his/her details are to be mentioned as per the following table:
The Transaction Type consists of:
The Transaction Mode consists of two options i.e ‘Cash’ and ‘Non-cash’. More rows can be added by clicking on the button ‘Add Row’. Suitable remarks are to be provided under the remarks section.
If any amount is received from an identifiable person who doesn’t hold a PAN, then his/her details are to be mentioned as per the following table:
If any amount is received from an unidentifiable person, then his/her details are to be mentioned as per the following table:
If any amount which was not covered in any of the above-mentioned categories then it should be mentioned here. Suitable remarks are to be provided under the remarks section.
This section computes a figure (A1 – (A2+A3+A4+A5+A6+A7)), for which no explanation is provided.
Yes, it is advisable to log in to the compliance portal. If a taxpayer doesn’t log in he/she will not be able to respond to the issues raised.
Upon examining the online response submitted by the taxpayer, ITD can raise an additional query request to seek further information/clarification from the taxpayer. The taxpayer needs to respond to the additional query request as well.
If there are any e-Verification issues it will be pushed to the compliance portal for e-verification, Email and SMS will be sent to the taxpayer informing about the issue raised. Taxpayers then need to respond to those issues raised.