The Finance Minister of the Union revealed that 100,000 notices have been issued by the Income Tax Department to taxpayers who failed to submit their income tax returns. Furthermore, individuals who inaccurately reported their income or provided false information were also among those who received these notices.
Under the provisions of the income tax act, reassessment is permitted for the returns dating back 4 to 6 years. Consequently, notices have been dispatched for the reassessment of tax returns submitted during that period. The completion of this reassessment process is expected by March 2024.
In FY23, the finance ministry’s data indicated a remarkable milestone with a total of 74 million Income Tax Return (ITR) filings. However, out of this substantial figure, approximately 70 percent, which is 51.2 million, consisted of zero-tax ITRs.
The minister mentioned that notices were issued to individuals whose income was nearly Rs 50 lakh, and these notices are anticipated to be resolved by the conclusion of this fiscal year.
“One lakh notices are sent where information is available that income is more than what you have filed, or there are reasons to believe that income has been understated or where they have not filed it and information is there that they should have filed it,”said the Finance Minister.
The minister further explained that previously taxpayers were required to maintain records for a period of 10 years. However, the rules have changed, and now tax assessments cannot be revisited beyond six years. Only in the 4th, 5th, and 6th years, tax officers can reopen assessments under specific circumstances.
Yesterday, on the 164th Day celebration of Income Tax, the minister observed that an increase in tax collection has been achieved in recent years without any increase in tax rates. It has been made possible through an increase in efficiency of the Department.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
