Income Tax Department: Income Tax Department keeps an eye on the money transactions in the country. From where is the money coming, to whom is it going, how much money is going, from where it has come and how is it being used, all this is under the eye of Income Tax Department. There is a rule in the country that after a certain limit you have to pay tax. If there is any manipulation in the tax, then the Income Tax Department takes action on it. In some cases, even a small mistake can land you in the clutches of Income Tax Department even after 10 years.
Income Tax Department plays an important role in increasing the finances of the country. The money that comes from income tax is used for the progress of the country.
If someone manipulates this money, then the Income Tax Department takes strict action on him. Some mistakes can trap the tax payer even after ten years. Let’s know about the rules of Income Tax-
Income tax returns are scrutinized
There is a rule in the country that after a certain income, you have to pay tax. For this, you have to fill ITR. To ensure that there is no discrepancy in this, scrutiny is done by the Income Tax Department.
The Income Tax Department is now scrutinizing Income Tax Returns even more strictly.
Tax notice will come to your home
If you get caught in the scrutiny of the Income Tax Department, then even a small mistake can bring you on the radar of the department. Tax notice can come to your home. But the question also arises that in how many years old cases can the Income Tax Department take action. Let us know its rules.
Filing ITR is mandatory
It is necessary for taxpayers to fill Income Tax Return. This is a careful work. It is necessary to fill all the information in it and disclose your income.
The Income Tax Department has different rules for sending notices in two types of cases. The Income Tax Department has made rules regarding how many years old notices can be sent.
There is also a rule for three years
Taxpayers can be sent a Tax Notice for three assessment years. If you have made any mistake in filing income tax in the last three years, you can get a notice. If any problem is seen in the tax returns filed in three assessment years, then that is the notice you get. In such a case, an answer can be sought.
Ten years old cases can also be opened
It is not that the Income Tax Department can send you notices only for three years. You can also be sent a tax notice by the Income Tax Department on 10 years old tax returns. There are some conditions for this.
In this case, notice can come after ten years
The Income Tax Department can send a notice in a 10 year old case only if it has solid evidence that you have evaded tax. Apart from this, notice can be sent only if the tax fraud is above 50 lakhs.
Income Tax Office has the right
The Assessing Officer has been given the right under Section 148 of the Income Tax Act, 1961. In such cases, he can re-evaluate the ITR of the taxpayer and send a notice and ask for a reply. Evidence is necessary for this.
The High Court has also given its decision
In a similar case, the Delhi High Court also commented in November 2023. It was clarified that in cases of more than Rs 50 lakh, the Income Tax Department has the right to send a notice even after 10 years.
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