Central Board of Direct Taxes is identifying non-filers through Non-filers Monitoring System. Non-files have 21 days to respond. If a satisfactory explanation is offered, matters will be closed online.

Central Board of Direct Taxes (CBDT) is identifying people who have not yet filed their income tax return. Non-filers Monitoring System (NMS) using Data Analytics. NMS aims to identify and monitor people who enter into high-value transactions and have potential tax liabilities but have still not filed their tax returns.

CBDT analyzed the data to identify non-filers about whom specific information was available in the database of the Income Tax Department. Collected information includes statement of financial transactions (SFT), tax deduction at source (TDS), tax collection at source (TCS), information about foreign remittances, exports and imports data etc.

Data analysis has identified several potential non-filers who have carried-out high-value transactions in Financial Year 2017-18 but have not yet filed their Income Tax Return (ITR) for Assessment Year 2018-19. The Department has enabled e-verification of these NMS cases to reduce the compliance cost for taxpayers by soliciting their response online.

Taxpayers can access information related to their case from the ‘Compliance portal’ which is accessible through the e-filing Portal of the Department at https://incometaxindiaefiling.gov.in. The PAN holder is required to submit the response electronically on the Compliance Portal and keep a printout of the submitted response for record purposes.

Non-filers are required to assess their tax liability for AY 2018-19 and file the Income Tax Returns (ITR) or submit an online response within 21 days. If the explanation offered is found to be satisfactory, matters will be closed online. However, in cases where no return is filed or no response is received, initiation of proceedings under the Income-tax Act, 1961 will be considered by the I-T Department.