Check Income Tax compliance with Income Tax Non-filers MonitoringSystem (NMS)

Have you filed your Income tax return ? If No and deposited old high denomination notes in your account above the threshold limit specified by the government then get ready to hear from Income tax department. Income Tax department has started issuing non-compliance notice under non-filers monitoring system.Non-filers monitoring system is introduced by income tax department to find out potential tax evaders. If you have done any high-value transactions and not filed your income tax return or not paid income tax honestly you are likely to get notice.

The Non-filers Monitoring System (NMS) identifies potential tax liabilities of tax evaders based on data mining and analytics. Non-filers monitoring system dig out data from various sources such as Annual Information Return (AIR), Centralized Information Branch (CIB) and TDS/TCS statements. The identified non-filers will be issued with non-compliance notice via SMS, e-mails, and letters. The non-filer has to submit the response to this notice online on the e-filing website of Income tax.

How to check Non-Compliance status online?

• Login to http://www.incometaxindiaefiling.gov.in/. If you don’t have an account, create one.


• Go to Compliance tab and click on ‘View and Submit Compliance”.

Status -1 – Compliance

• If you have filed ITR for all previous years system will display – “No compliance record relating to filing of return has been generated in your case.”

Status -2 – NonCompliance

• If you have not filed ITR and done a high-value transaction you will see “Filing of Income Tax Return” tab showing status as per record “Return not received” in respective assessment years.

You can choose one of the following response options:

• ITR has been filed


• ITR has not been filed

If you choose that ITR has been filed you need to provide a mode of filing a return (e-file or paper), date of filing return and acknowledgment number.

If you have not filed ITR you have following option to select under reason tab.

• Return under preparation


• Business has been closed


• No taxable income


• Others

If you select others you need to compulsory fill detail under Remarks section.

Once you have completed with Filing of Income Tax Return section you need to click on tab Related Information Summary Tab.

• In this tab, you will find Information description provided by third parties. You need to choose an option from the drop down selection menu Information Relates To. Following options will be given for selection.
  
  
  
  • 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 transaction is exempt
  
  
  • Self-Income from transaction is below taxable limit
  
  
  • Self-Income from transaction relate to different AY
  
  
  • Self-Not Known
  
  
  • Other PAN
  
  
  • Not Known
  
  
  • I need more information

Once you complete the selection click on Submit button. Your response will be submitted screen will display Response PDF. You should save and take print of PDF response for your reference

Your response will be verified by Income tax department and if found satisfactory, the issue will be closed. You can check the status online after some time.