Advance Tax Reminder: CBDT’s SMS Drive for FY24

The Central Board of Direct Taxes (CBDT) has initiated an e-campaign to notify taxpayers whose taxes paid during the current fiscal year do not match their financial transactions. Through emails and SMSs marked as “Advance Tax e-Campaign-Significant Transactions for AY 2024-25”, taxpayers are urged to accurately calculate and deposit their advance tax by March 15.

What is advance tax?

Advance tax is the income tax that is paid in instalments during the financial year, instead of paying the entire tax at the end of the year. Advance tax is applicable to all taxpayers, except senior citizens who do not have any income from business or profession. Advance tax is payable if the total tax liability in a year exceeds Rs 10,000.

How to pay advance tax?

Advance tax can be paid online through the income tax department’s e-filing portal or through designated banks. Advance tax is payable in four instalments: 15% by June 15, 45% by September 15, 75% by December 15 and 100% by March 15 of the financial year.

Why is CBDT sending emails and SMSs?

The CBDT said that it has received information on specific financial transactions undertaken by persons/entities during the financial year 2023-24. Based on this information, the department has identified such persons/entities where payment of taxes for FY 2023-24 (AY 2024-25) is not commensurate with the financial transactions made by them during the said period.

The department is undertaking an e-campaign, which aims to inform such persons/entities of significant financial transactions, through email (marked as Advance Tax e-Campaign-Significant Transactions for AY 2024-25) and SMS, urging them to compute their advance tax liability correctly and deposit the due advance tax on or before March 15.

How to check your Annual Information Statement (AIS)?

The income tax department receives information on specified financial transactions of taxpayers from various sources. To increase transparency and promote voluntary tax compliance, this information is reflected in the Annual Information Statement (AIS) module and is available to persons/entities for viewing.

The value of ‘significant transactions’ in the AIS has been used for carrying out this analysis. To view the details of significant transactions, the persons/entities can log in to their e-filing account and go to the compliance portal. On this portal, the e-campaign tab can be accessed to view significant transactions. Persons/entities, who are not registered on the e-filing website, have to first register themselves.

What to do if there is any discrepancy or error?

If there is any discrepancy or error in the information provided by the department, the persons/entities can submit their response online through the compliance portal. The response can be either agree or disagree with the information. If disagree, then reasons for disagreement along with supporting documents can be uploaded.

The CBDT has advised taxpayers to verify and update their email address and mobile number on the e-filing website to receive electronic communication from the department. The CBDT has also requested taxpayers to pay their due taxes in time to avoid any penal interest and facilitate hassle-free processing of income tax returns.

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