How to respond to Non-filing of Income Tax Return Notice?

Author
By Hiral Vakil on March 7, 2019

What is Non-Filers Monitoring System(NMS)?

Non-Filers Monitoring System, or NMS, is a monitoring system of IT Department that identifies the people who are liable to file taxes (i.e., with annual income more than 2,50,000) but haven’t done so. Upon identifying such non-compliant taxpayers, the system automatically sends a non-compliance email to taxpayer’s registered email address. Monitoring system uses

  • ​AIR (Annual Information Return) filed by Financial Institutions
  • ​CIB (Centralised Information Branch)
  • TDS Statements to identify such taxpayers.

Every year I-T Department notifies non-filers through SMS and email.

Sample email from Non-filers Monitoring System

Sample Email for Non-filers

How to respond to NMS compliance email?

Here is a step by step guide on how to deal with non-filers monitoring system email

1. Login Income Tax Website.

2. Navigate to Compliance > View and Submit Compliance.

3. You will see the Submit Compliance Form.

4. Navigate to Filing of Income Tax Return.

5. Navigate to Asssessment Year for which Return Not Received.

6. You have two options to respond:

  • ITR has been filed,
  • ITR has not been filed.

7. If you select option (a), you need to provide:

  • ​Mode of filing the ITR,
  • Date of filing the ITR,
  • An acknowledgement Number.

8. If ITR was e-Filed, details will be prefilled automatically.

9. If you select option (b), you need to provide one of the following reasons:

  • ​​Return under Preparation,
  • Business has been Closed,
  • No Taxable Income,
  • Others.

10. Navigate to Related Information Summary.

11. Choose a relevant option under Information Related To against each transaction mentioned and provide additional information if required.

Following are the options available to a taxpayer under Information Relates To tab:

  • ​Self-Investment/ expenditure is out of exempt income
  • Self-Investment/ expenditure is out of accumulated savings
  • ​Self-Investment/ expenditure is out of gifts/ loans from others
  • ​Self-Investment/ expenditure is out of foreign income
  • Self-Income from a transaction is exempt 
  • ​Income from a transaction is below taxable limit 
  • ​Self-Income from transaction relate to different AY 
  • ​Self-Not Known
  • ​Other PAN 
  • ​Not Known 
  • ​I need more information

12. Upon submission you will see following screen.

13. Download Response.pdf for your future reference.