The tax department has sent notices to nearly one lakh individuals whose annual income was in excess of Rs 50 lakh, which included those who did not file returns or persons whose disclosed income was seen to be understated as information from other sources — such as high-value purchases. In recent years, the government has been tracking data from multiple sources and matching it with the returns and wherever a gap is observed notices are usually sent, giving taxpayers time to respond and rectify their annual filings.
“Now, no tax assessee will have to face reopening of tax assessment after six years. And in fourth, fifth and sixth year, they (tax officers) reopen the assessment only under certain situations,” Sitharaman said at an event to commemorate the 164th income tax day. She said between the fourth and the sixth years, returns are reopened only after approval from a senior 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 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. ”