Income Tax Notice: The Income Tax Department will no longer trouble small taxpayers. The department, while issuing directions to implement the apex court’s decision regarding the notices sent after the assessment period of three years, is for FY 2016 and FY 2017.
Income Tax Department Notice: Income Tax Department officials will no longer issue show cause notices to small taxpayers, as the department has ordered field offices not to issue notices for the assessment year 2012-13 to 2014-15.
The department, while issuing directions to implement the apex court’s decision with regard to notices sent after the assessment period of three years, is for FY 2016 and FY 2017 where the time limit for issue of such notices is is 3 years. Within 30 days, the tax authorities will issue a show cause notice and inform the taxpayers to initiate reassessment action within 30 days.
The Central Board of Direct Taxes (CBDT) has asked tax authorities to give two weeks time to taxpayers to respond to such notices, which can be extended in genuine cases on the request of the taxpayer. The Supreme Court had earlier this month ruled in favor of the IT department and upheld all revaluation notices issued on or after April 1, 2021.
The government in the budget of last year (2021-22) reduced the reopening time for IT assessment from 6 years to 3 years. However, the tax department sent several notices to reopen the assessments that were more than three years old. These notices were then challenged in several High Courts and the Income Tax Department appealed to the Supreme Court to uphold such notices.
According to the report, LLP partner Shailesh Kumar said that the CBDT issued this necessary direction to provide transparency to both the tax authorities and taxpayers and to interpret the directions of the Supreme Court and apply them equally in all 90,000 cases across India. Is..
