How to File Income Tax Complaint Against Someone (2023 Guide)

Have your tax returns been filed, but you haven’t yet gotten your refund? Alternatively, is there anything else you want to discuss with the tax department?

The Central Board of Direct Taxes (CBDT) has set up a dedicated automated electronic portal on the ministry’s electronic filing website to receive and process complaints regarding tax evasion, foreign undisclosed assets, and Benami properties.

The Income Tax Department has developed e-Nivaran, an integrated complaint management system to track taxpayer complaints and ensure timely resolution. Through e-Nivaran, taxpayers can file complaints related to AO, NSDL, UTISL, CPC-ITR, CPC-TDS, E-Filing Website Team, Directorate of Systems, and SBI-Refund Banker. 

In this article, you will get to know about how to file income tax complaint against someone.

What Is E Nivaran Portal Income Tax?

The Income Tax Department has developed e-Nivaran, an integrated complaint management system, to track taxpayer complaints and ensure timely resolution. 

By using E-Nivaran’s system, the taxpayer can file a complaint with NSDL, Valuation Officer, CPC-ITR, UTISL, CPS-TDS, E-Filing Team, and SBI Reimbursement Bank. The system was launched on June 17th, 2016 to receive all complaints from various channels through one point of contact.

Taxpayers and employees can use E-Nivaran to file, view, and resolve all disputes through the website. The E-Nivaran system, based on the best technology, has been introduced to settle tax returns quickly and easily.

This system is an amalgamation of offline and online complaints and will be the primary system for resolving complaints. Online complaints are those registered through the Income Tax Department’s website, and offline complaints are filed by taxpayers visiting the Income Tax Department’s office to file a complaint.

The E-Nivaran system is set up so that all complaints are forwarded to the relevant departments and also given the opportunity to be tracked.

This ensures that issues reach the right departments and facilitates timely resolution.

How Do I Inform the Income Tax Department of a Person

You can file a  Grievance with the IT department for many reasons. Some of the most common are:

Black money and tax evasion, tax refund issues, complaints against a particular IT department/company/person, Delayed return processing, NRI taxation, rectification as per Section 154(1), registered personal details-related queries or problems, and form 26AS and TDS related complaints. 

Here are the steps on how to file a complaint against a person:

1. Go to the e-filing portal www.incometaxefiling.gov.in and click on the ‘Nivaran’ option on the top right of the page.
2. Click Submit Grievances and enter your TAN and PAN.
3. Next, you must log in to the account displayed on the electronic form page.
4. Submit your PAN details with your complaint.
5. Next, provide your assessment year details, registered mobile number, and email ID. It will also provide a brief description of your concern.
6. Once you have submitted your complaint, a complaint reference number will be generated. Please make a note of this number so that it can better track the status of your complaint.
7. Then you must click on the e-Nivaran option and be sure to enter your complaint reference number.

How Do I File a Complaint against an Illegal Income in India

To file income tax complaint, now anyone can file a Tax Evasion Petition on the e-filing website of the Department website of the Department under the head  File complaint of tax evasion/undisclosed foreign asset/ benami property.

1. Complaints can be filed by both those who have an existing PAN/Aadhaar and those who do not.
2. Once a one-time password (OTP) has been validated, an individual may complain of violations.
3. Income Tax Act, 1961
4. Black Money (Undisclosed Foreign Assets and Income) Taxation Act, 1961
5. Benami Transaction Prevention Act (revised law)
6. Three forms are provided, depending on the violation.

Once this complaint is filed, the CBDT will provide the individual unique number for each complaint. Then they can track the progress of these registered complaints on the Department`s website.

How Do I Complain about Black Money Holder

Black money includes all funds derived from illegal activity and other legitimate income that is not recorded for tax purposes. Black money proceeds are usually obtained in cash from illegal economic activities and are therefore not taxable. Those who receive black money must either hide it, use it only in the informal economy, or attempt to launder it to feign legitimacy.

The center set up an email ID – blackmoneyinfo@incometax.gov.in  – to allow people to submit information about hoarders to tax authorities. On this e-mail address, people can also provide information about those attempting to convert black money into white money. 

How to file benami property complaint?

Below is the process to file benami property complaint:

1. Go to https://www.incometaxindiaefiling.gov.in/home

 2. Click on the ‘Submit Tax Evasion Petition or Benami Property Holdings’ link under ‘Quick Links’ on the bottom left of the home page.

3. You are redirected to Submit Tax Evasion Petition or Benami Property holding page.

4.  Select the appropriate option:

•  Do you want to file a simple complaint regarding tax evasion, foreign undisclosed income/ asset,
• Benami property (without claim of reward)?
•  Do you want to become an informer and claim reward?

 Click on continue.

5. Choose one of the following options:

• I am a holder of a PAN
•  I have no PAN but have Aadhaar 
•  I have no PAN or Aadhaar

And click on continue. You will be redirected to ‘Tax Evasion Submission form’

6.  Enter the Complainant details:

a. Type of Complaint:

•  Form 1: Complaint regarding Tax evasion
•  Form 2: Complaint regarding undisclosed foreign assets
•  Form 3: Complaint regarding Benami Properties/ transactions

b. Name and address of the Person filing the complaint

c. Mail ID and Mobile no of person filing complaint

7. After entering the details, click continue. Enter the OTP sent on the email id and click continue. It will redirect you to ‘Tax evasion Submission Form (reported person)’.

8.  Enter details of Reported person The person to whom the complaint is directed. Here are the details:

•  Name of reported person/ entity
•  PAN/ TAN/ Aadhaar/ GSTIN of reported person
•  Contact details and Address of the reported person

9.  Enter details in Form I and Final Submission

10. In the next step, we will provide the details of tax evaded in Form I. Enter the details of tax evaded which is as follows:

a. Nature of tax evasion which includes:

• Undisclosed properties along with the address
•  Shell company
•  Undisclosed Bank accounts
•  Suppression of sales/ Unlawful activities in the garb of business/Non-payment/Non-deduction of TDS/ TCS/ Bogus purchases and expenses/Wrong claim of deduction/ exemption/ Any other

b. Complainants’ relationship with the reported person/ entity

c. Whether the person is willing to appear before IT authorities for a statement or oath as a witness?

d. Whether a person is willing to provide further information/ evidence?

After entering the above details, check the declaration box, Submit button.

The Complaint is registered with the Income Tax Department.

How Can I Write a Letter to Income Tax Department

It’s normal for people to make mistakes, but if there are certain errors in your income tax documents, you should report them to your income tax officer to avoid penalties later. You can write a formal letter to the Income Tax Department by following the Income Tax Correction Letter format.

Here, we have come up with a letter format for wage tax officers to make corrections. You can use this sample letter to the Income Tax Department to write a request for a correction on your paperwork.

Here is a sample letter format for Income Tax Officer for Correction From.

Mina Kapoor

58, Andrew Apartments

New Delhi

Date: March 19, 2022,

To,

Income Tax Officer

Income Tax Department

New Delhi

Subject: Request for correction in Challan No. 7X/X8/XX/200X

Respected Sir/ Madam,

I, Mina Kapoor, am writing this letter to request the following amendments to my ITR for 2019-2020.

As per Challan No. 7X/X8/XX/200X, my PAN card data was entered incorrectly and needs to be corrected. My correct PAN card no. is 654SADP. Please correct these to ensure the smooth processing of your ITR application.

Thanking you.

Sincerely,

What Is the Penalty for Black Money

An undisclosed foreign income or foreign assets discovered by an AO are subject to a 30% property tax. A 90% penalty (three times the calculated tax amount) is imposed on top of the tax amount charged. There are also other penalties that may be imposed, such as for failure to disclose required information, and the law also provides for prosecution.

FAQs:How to File Income Tax Complaint Against Someone

Can the IRS contact my neighbors?

Under the new law, the IRS will not contact anyone other than the taxpayer unless it has notified the taxpayer that it intends to contact them within one yea,r and the IRS has at least 45 days to notify the taxpayer.

Do IRS Whistleblowers get paid?

The Whistleblower Incentive can only be paid after the taxpayer has exhausted all appeal rights and paid taxes and other amounts so that the taxpayer can no longer claim a refund or attempt to recover the proceeds from the government, and this process can take up to 10 years or more.

How long does it take to resolve a grievance in income tax?

The purpose of the Central Directorate of Direct Taxes is to find a suitable solution to all complaints registered within 30 days of receipt of the complaint. For your convenience, issues are handled online.

Conclusion

Now that you know how to file income tax complaint against someone. Upon successful submission of a complaint, the department will assign a unique number to each complaint, and the complainant will be able to check the status of the complaint on the department’s website.

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