CBDT notifies taxpayers of Foreign Assets/Income, Donations, Non-filing of ITR & Mismatch

Income Tax
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Multiple Income Tax alerts this week – What they mean & what you should do?

If your inbox or phone has been buzzing with SMS or emails from the Income Tax Department, you’re not alone. This week, the department rolled out data-driven compliance nudges across categories.

Important: These are not notices – they’re early warnings giving you a chance to fix gaps before things escalate.

Let’s break down the key triggers and the exact actions you need to take :backhand_index_pointing_down:

:one: Wrong Claim of Donation (Section 80G)

Why flagged?

  • Donation claimed but doesn’t match Form 10BD / AIS
  • Claimed under wrong category (e.g., 100% instead of 50%)
  • Trust approval expired or PAN mismatch
  • Ineligible or cash donations claimed

What if ignored?

  • Deduction disallowed
  • Tax demand + interest
  • Penalty for under-reporting

Fix it:
:check_mark: Verify 80G certificate & approval validity
:check_mark: File Revised Return / Rectification u/s 154
:check_mark: Remove incorrect claims voluntarily

:two: Non-Disclosure of Foreign Assets (Schedule FA)

Why high priority?

  • Foreign bank accounts (even dormant)
  • Overseas shares, ESOPs, RSUs, ETFs, crypto
  • Info sourced via FATCA / CRS

Risks:

  • Heavy penalties under Black Money Act
  • Extended assessment period
  • Prosecution in extreme cases

Fix it:
:check_mark: Update Schedule FA accurately
:check_mark: Disclose asset details, peak balance & income
:check_mark: File Revised Return immediately
:check_mark: Pay applicable tax & interest

:backhand_index_pointing_right: Disclosure is mandatory even if no income earned

:three: AIS vs ITR Mismatch

Common triggers:

  • Bank & FD interest
  • Dividend income
  • Share / mutual fund transactions
  • High-value SFT transactions

If ignored:

  • Automated adjustments
  • Scrutiny selection
  • Tax demand + interest

Fix it:
:check_mark: Reconcile AIS + TIS vs ITR
:check_mark: If AIS wrong → Submit feedback on AIS portal
:check_mark: If ITR wrong → File Revised Return
:check_mark: Keep backup documents ready

:four: Non-Filing of ITR

Why contacted?

  • PAN linked TDS or SFT transactions
  • Despite substantial financial activity no ITR filed

Consequences:

  • Late fee u/s 234F
  • Further assessments
  • Future compliance red flags

Fix it:
:check_mark: File Belated Return within allowed timelines
:check_mark: If income below taxable limit → Respond on Compliance Portal

:rocket: The Bigger Picture

The department has clearly moved to a “communicate first, enforce later” approach.

:white_check_mark: Early correction = lower cost + zero litigation
:cross_mark: Delay = notices, penalties & unnecessary stress

:light_bulb: Pro Tip: If you’ve received one of these alerts, treat it as time sensitive. Most issues can be resolved cleanly with the right revision or response.

:envelope_with_arrow: Unsure whether you need to revise your return or just respond online? Drop a comment or reach out to me by clicking here. You can also refer this short video here

Let’s fix it before it escalates.

Income Tax itr e-compliance ais schedule-fa tax-filing revised-return schedule-fa foreign-income Income Tax > Income Tax Portal ais-feedback e-campaign mismatch

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What Are Multiple Income Tax Alerts This Week?

Income tax alerts are messages sent by the Income Tax Department through SMS, email, or the e-filing portal. When several alerts arrive close together, it usually means the system has flagged something that needs your attention.

These alerts are mostly reminders, not penalties.

Common Types of Income Tax Alerts You May Receive

AIS/TIS Mismatch Alert?

This alert appears when your Annual Information Statement AIS or Taxpayer Information Summary (TIS) does not match your return.

What to do:

· Log in to the income tax portal

· Check AIS and TIS carefully

· Compare them with Form 16, bank interest, and investment details

· Submit feedback if something looks incorrect

Pending E-Verification Alert?

If you filed your return but did not verify it, the department sends reminders.

What to do:

· Complete e-verification using Aadhaar OTP, net banking, or bank account

· Do this as soon as possible to avoid your return becoming invalid

Outstanding Demand Alert?

This alert shows up when there is a small or old tax demand against your PAN.

What to do:

· Check the demand details online

· Pay it if it’s correct

· Disagree and respond if it’s incorrect

High-Value Transaction Alert?

This is triggered when large transactions like deposits, property purchases, or investments appear in your records.

What to do:

· Ensure the transaction is reported in your return

· Confirm the source of funds

· Keep documents ready in case of future queries

Why Are These Income Tax Alerts Increasing Now?

· Faster data sharing between banks, employers, and tax systems

· Automated matching of income and expenses

· Late filing, revised returns, and updated returns activity

This is normal and affects salaried individuals, freelancers, pensioners, and investors alike.

Should You Be Worried About These Alerts?

No, most alerts are informational or corrective.

You should act only if:

· An action is mentioned with a deadline

· Verification or response is pending

· A demand amount is shown

Ignoring alerts for too long can cause delays in refunds or unnecessary notices later.

Simple Tips to Handle Income Tax Alerts Smoothly

· Check registered email and SMS regularly

· Log in to the income tax portal once a week during filing season

· Keep Form 16, AIS, and bank statements handy

· Respond before the deadline, even if it’s just feedback

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I check my TIS/AIS when completing my tax return. So, I’m aware of the SFT and that it typically contains: High-value transactions, Payment of dividend, Payment of interest and ​Transactions in listed securities and u​nits of mutual funds. Could you explain what makes a transaction “high value”, please @garg.pulkit131 / @Pranab63? Is there a fixed rupee amount above which it becomes “high value”? Or different “bars” for different scenarios.

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When you check your AIS (Annual Information Statement) or TIS (Taxpayer Information Summary), the term “high-value transaction” often creates confusion. It doesn’t mean “big” in a general sense. It simply means the transaction crossed a **specific reporting threshold set by the Income Tax Department.

Let’s break it down clearly.

What Is a “High-Value Transaction” in AIS/TIS?

A transaction becomes “high value” when it exceeds a predefined limit and must be reported to the Income Tax Department by banks, companies, registrars, or other reporting entities under Statement of Financial Transactions (SFT) rules.

There is no single fixed amount in rupees for all cases.

Different activities have different bars.

Is There One Fixed Amount That Makes a Transaction High Value?

No.

Each type of transaction has its own threshold. Crossing that limit triggers reporting, even if the amount looks normal to you.

Common High-Value Transaction Thresholds You’ll See in AIS

Cash and Banking Transactions

· Cash deposit or withdrawal above ₹10 lakh in a savings account in a financial year

· Cash deposit above ₹50 lakh in a current account

· Time deposits (FD/RD) above ₹10 lakh in a year (excluding renewals)

Investments in Securities and Mutual Funds

· Equity shares purchase or sale exceeding ₹10 lakh in a year

· Mutual fund investments above ₹10 lakh

· Debentures or bonds above ₹10 lakh

Dividend and Interest Income

· Dividend income above ₹10,000 (reported by companies)

· Interest income above ₹40,000 (₹50,000 for senior citizens) reported by banks

Even if tax is already deducted, the transaction still appears in AIS.

Property and Asset Transactions

· Purchase or sale of immovable property valued at ₹30 lakh or more

· Stamp duty value is considered, not just the agreement amount

Why Do These Transactions Appear Even If Tax Is Paid?

AIS/TIS is informational, not accusatory.

It helps the tax department:

· Match your return with third-party data

· Spot mismatches early

· Reduce notices later

That’s why even fully compliant transactions show up.

What Should You Do When You See a High-Value Transaction?

· Cross-check with your bank statements, broker reports, or Form 26AS

· Ensure the income is correctly declared in your return

· Submit feedback in AIS if something is incorrect or duplicated

Ignoring mismatches is what usually causes trouble—not the transaction itself.

Key Takeaway on High-Value Transactions

· “High value” depends on transaction type, not a universal amount

· Different activities have different reporting thresholds

· Appearance in AIS/TIS does not mean tax is due

· Accuracy and matching matter more than size

If your return aligns with AIS/TIS, you’re already on the safe side.

1 Like
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Hey @Russell,

We’ve a detailed thread on what qualifies as high-value transactions here!

Happy to help.

1 Like
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Thank you @Pranab63 and @Diti_Savalia for your prompt replies. That’s just the information I was looking for!