India News | I-T Dept to Complete Scrutiny Assessment of 1 Lakh Notices by March 2024: FM

New Delhi, Jul 24 (PTI) The income tax department by March 2024 will complete the assessment of one lakh income tax notices sent for mismatch in disclosed income and information available with the department, Finance Minister Nirmala Sitharaman said on Monday.

The tax department has sent about 1 lakh notices to individuals with income above Rs 50 lakh for a mismatch in income disclosed in ITR versus information available with the department. Also, notices have been sent to non-filers of tax returns.

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Under income tax law, officers can reopen past assessments of up to six years.

“Now no tax assessee will have to face reopening of tax assessment after six years. And in 4th, 5th and 6th year, they (tax officers) reopen the assessment only under certain situations," Sitharaman said at the 164th income tax day event here.

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She said between 4th and 6th year cases are reopened only after approval from the Principal Chief Commissioner level officer and in cases where income is more than Rs 50 lakh.

“About 1 lakh notices have been issued and I'm being assured by the CBDT that by March 2024 that this entire 1 lakh (cases) will be cleared. That set of notices which have been issued based on the information that we had, for whose income was above Rs 50 lakh and certain other criteria… these assessments will be completed by March 2024,” the minister said.

Sitharaman further said that the Central Board of Direct Taxes (CBDT) in May 2023 completed a scrutiny assessment of the 55,000 notices which they had sent pursuant to a Supreme Court judgement.

"The board today is not sitting over notices which have been issued and ….it is not a place of discretion, it is not a place where people are gaming the system… there is a clear cut approach…,” Sitharaman added.

She further said that the government has not hiked income tax rates, yet tax revenues are increasing due to the efficiency of the Department.

“No rate hike but handholding and supporting assesses where ever required… we are looking at assessees as wealth creators,” she added.

Stating that under the new tax regime, people with an annual income of up to Rs 7.27 lakh will not have to pay any tax, Sitharaman said there is a constant approach to make taxation, rates, and technology people-friendly.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)