Does the below email seem familiar to you?
Attention VARUN (XXXXX9431X), Income Tax Department has received information about certain significant financial transactions relating to FY 2023-24 (AY 2024-25). Please view transactions under e-Campaign tab on Compliance Portal and remember to pay appropriate Advance Tax….
Who may have received this?
The Income Tax Department is running a campaign for taxpayers who have made significant financial transactions in the current financial year which is FY 2023-24 and have not paid their share of advance taxes.
Such individuals/entities will be sent an intimation via email or SMS. The ITD wants such assessees to compute their advance tax liability correctly and deposit the due advance tax on or before 15th March 2024.
What should I do if I receive this email/SMS?
You first need to navigate to the e-compliance portal. You can follow the below steps:
- Login to e-Filing portal by using your login credentials.
- Navigate to Pending Actions > Compliance Portal > e-campaign.
Here, you will be able to view the ‘significant transactions’ made for this financial year. If you disagree with the transaction details, you can provide feedback and an explanation on the same.
ITD has issued a press release accepting that one of the reporting entities reported incorrect figures, which are expected to be corrected within a day or two. You can verify AIS again in a few days and pay your advance tax before March 15 (if applicable).
However, if you agree with the same, you need to calculate your advance tax liability and pay 100% of the taxes before 15th March 2024 which is the due date for the last advance tax instalment.
How to calculate advance tax?
- Calculate and add all your incomes for the FY.
- Subtract the amount of deductions eligible.
- Compute the tax liability as per the latest slab rates (special rates in case of capital gains) and the regime opted for.
- If the tax liability exceeds ₹10,000 after deducting any TDS paid, advance tax needs to be paid.
How to pay advance tax?
You can follow the below steps to make your advance tax payment on the e-filing portal:
- Log in to the e-filing portal
- Navigate to e-file > e-pay tax
- Select ‘Income tax’ category
- Enter the relevant assessment year (for FY 2023-24, AY 2024-25 needs to be selected) and select the type of payment as ‘advance tax (100)’
- Click on continue, enter the tax amount and make the payment.
You can refer to this thread for more details: Advance tax due dates and applicability