Issue of tax notices has develop into predictable: Nirmala Sitharaman

New Delhi: Finance minister Nirmala Sitharaman mentioned on Monday that challenge of tax notices and re-opening of previous assessments within the case of excessive revenue earners the place the division has details about their non-compliance, has develop into predictable and that there isn’t a fishing expedition.  

Speaking at an occasion held to mark the 164th Income Tax day within the capital, the minister mentioned that the Modi administration has introduced extra certainty to tax payers. The minister cited the instance of rationalising the interval throughout which a re-assessment could be executed in sure instances the place the division has details about understatement of revenue.  

The minister additionally mentioned that now tax payers needn’t fear about sustaining his information for ten lengthy years as earlier. 

 “Now no tax assessee goes to face the scenario of reopening his evaluation after six years. And even within the fourth, fifth and sixth years, they reopen instances solely beneath sure circumstances,” the minister said. 

That covers cases where the person has income more than ₹five million and the tax department has evidence of understatement of income, the minister explained. 

Sitharaman also said that such reopening will be done only with the permission of a high ranking official. 

The minister explained that based on the applicable parameters, notices have been issued to assessees, where the department has reasons to believe income has been understated, or where return filing obligation has not been met.  

Sitharaman said that if she remembered correctly, around 100,000 notices were sent. However, it is possible that, based on the responses filed by those who have received notices, the number of cases may already have fallen below 100,000, given that the process is dynamic.

 “I want to convey this. These (notices) are not being sent thoughtlessly. I have been assured by the Chairman Central Board of Direct Taxes that by March 2024, these entire one lakh (notices) will be cleared. This way or that way,” the minister mentioned. These are instances the place individuals have revenue greater than ₹5 million.  

Sitharaman appreciated the efforts of the division in enhancing the tempo of processing tax returns, challenge of refunds and resolving grievances. 

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Updated: 25 Jul 2023, 01:20 AM IST