Non-filer
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
29 March 2014
Dear Sir,
Now a days cpc is sending sms and email to non-filers, against whom department has received information regarding saving bank a/c transactions or tds in form 26AS etc.
Cpc asking them to login and click on compliance link and to select relevent option.
In case of one of my client, he had income below taxable limit in fy 2010-11 and therefore he did not file his return. Local office on the basis of tcs reflected in 26AS had issued a letter (not a notice) asking him about the return if filed.
Suppose in above case if we select the option of income below taxable limit at compliance link. Then what action cpc would take further.
Please advise me in this regard.
Now a days cpc is sending sms and email to non-filers, against whom department has received information regarding saving bank a/c transactions or tds in form 26AS etc.
Cpc asking them to login and click on compliance link and to select relevent option.
In case of one of my client, he had income below taxable limit in fy 2010-11 and therefore he did not file his return. Local office on the basis of tcs reflected in 26AS had issued a letter (not a notice) asking him about the return if filed.
Suppose in above case if we select the option of income below taxable limit at compliance link. Then what action cpc would take further.
Please advise me in this regard.
29 March 2014
you need to respond on the basis of information applicable to your case...if your income is below taxable limit, then click it...otherwise, kindly compute your tax liability and file manual returns and pay tax.
Querist : Anonymous
Querist :
Anonymous
(Querist)
30 March 2014
If we file manual return then it would be file under which section?
Whether the aforementioned letter can be treated as notice to file return?
Whether the aforementioned letter can be treated as notice to file return?
04 August 2024
Here’s a breakdown of the process and implications related to the compliance communication from the CPC and the handling of the non-filing of returns:
### **Handling CPC Compliance Communication:**
1. **Responding to CPC’s SMS/Email:**
- When CPC sends an SMS or email asking you to log in and click on the compliance link, it is to verify whether you need to file a return for the year in question. You need to select the appropriate option based on your situation.
2. **Option Selection for Income Below Taxable Limit:**
- If your client’s income was below the taxable limit for the Financial Year (FY) 2010-11 and they did not file a return, selecting the option “Income Below Taxable Limit” on the compliance link will generally indicate that the income was not above the threshold requiring a tax return. This should prevent any further action from CPC related to that year.
3. **Further Action by CPC:**
- After selecting the relevant option, CPC will typically review the compliance status and, if it matches their records and the selected option, they will close the case without further action. There should be no penalty or further proceedings if the information provided is accurate.
### **Filing a Manual Return:**
1. **Filing Under Section 139(1) or 139(4):**
- **Section 139(1):** If you decide to file a return manually, it would generally be under Section 139(1) if it is within the due date for the assessment year. For FY 2010-11, the due date for filing the return would have been July 31, 2011.
- **Section 139(4):** If the return is being filed after the due date, it will be under Section 139(4), which covers belated returns. This allows filing of the return at any time before the end of the relevant assessment year or before the completion of assessment, whichever is earlier.
### **Status of the Letter from Local Office:**
1. **Nature of the Letter:**
- If the local office issued a letter and not a formal notice, it is likely a preliminary communication to verify whether a return was filed or not, rather than a formal notice. Such letters are often part of routine compliance checks.
2. **Is the Letter a Notice?**
- This letter is not considered a formal notice under section 142(1) or 143(2). A formal notice would typically specify a deadline and provide specific legal grounds.
3. **Implications of the Letter:**
- The letter can be used to show that you were given an opportunity to clarify your non-filing situation. However, it should not be treated as a notice requiring a response under legal provisions.
### **Summary:**
- **Selecting “Income Below Taxable Limit” on the compliance link should suffice if your client's income was indeed below the taxable threshold.**
- **If filing a return manually, use Section 139(4) for belated returns.**
- **The letter from the local office is generally not a formal notice but a preliminary communication.**
Make sure all communications and filings are documented properly to avoid any potential issues.
### **Handling CPC Compliance Communication:**
1. **Responding to CPC’s SMS/Email:**
- When CPC sends an SMS or email asking you to log in and click on the compliance link, it is to verify whether you need to file a return for the year in question. You need to select the appropriate option based on your situation.
2. **Option Selection for Income Below Taxable Limit:**
- If your client’s income was below the taxable limit for the Financial Year (FY) 2010-11 and they did not file a return, selecting the option “Income Below Taxable Limit” on the compliance link will generally indicate that the income was not above the threshold requiring a tax return. This should prevent any further action from CPC related to that year.
3. **Further Action by CPC:**
- After selecting the relevant option, CPC will typically review the compliance status and, if it matches their records and the selected option, they will close the case without further action. There should be no penalty or further proceedings if the information provided is accurate.
### **Filing a Manual Return:**
1. **Filing Under Section 139(1) or 139(4):**
- **Section 139(1):** If you decide to file a return manually, it would generally be under Section 139(1) if it is within the due date for the assessment year. For FY 2010-11, the due date for filing the return would have been July 31, 2011.
- **Section 139(4):** If the return is being filed after the due date, it will be under Section 139(4), which covers belated returns. This allows filing of the return at any time before the end of the relevant assessment year or before the completion of assessment, whichever is earlier.
### **Status of the Letter from Local Office:**
1. **Nature of the Letter:**
- If the local office issued a letter and not a formal notice, it is likely a preliminary communication to verify whether a return was filed or not, rather than a formal notice. Such letters are often part of routine compliance checks.
2. **Is the Letter a Notice?**
- This letter is not considered a formal notice under section 142(1) or 143(2). A formal notice would typically specify a deadline and provide specific legal grounds.
3. **Implications of the Letter:**
- The letter can be used to show that you were given an opportunity to clarify your non-filing situation. However, it should not be treated as a notice requiring a response under legal provisions.
### **Summary:**
- **Selecting “Income Below Taxable Limit” on the compliance link should suffice if your client's income was indeed below the taxable threshold.**
- **If filing a return manually, use Section 139(4) for belated returns.**
- **The letter from the local office is generally not a formal notice but a preliminary communication.**
Make sure all communications and filings are documented properly to avoid any potential issues.
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