New Delhi, 30th July 2023: In a recent announcement, Finance Minister Nirmala Sitharaman revealed the income tax department’s ambitious goal to complete the assessment of one lakh income tax notices related to mismatched disclosed income and departmental records by March 2024. These notices were issued to individuals with income above Rs 50 lakh, where a discrepancy was identified between the income disclosed in their Income Tax Return (ITR) and the information available with the department.
Apart from these notices, the tax department has also sent notices to non-filers of tax returns. As per the income tax law, tax officials have the authority to review previous assessments within a span of six years. However, the Finance Minister assured taxpayers that their assessments will no longer be reopened after the completion of six years. Reopening assessments between the 4th and 6th year will only occur under specific circumstances, and approval from a Principal Chief Commissioner level officer will be mandatory for cases where the income exceeds Rs 50 lakh.
Highlighting the government’s efforts, the Finance Minister mentioned that approximately 1 lakh notices have already been issued based on available information, targeting individuals with income above Rs 50 lakh and fulfilling specific criteria. Notably, in May 2023, following a Supreme Court judgment, the Central Board of Direct Taxes (CBDT) successfully completed the scrutiny assessment of 55,000 notices.
Sitharaman further emphasized that the government has not raised income tax rates, yet tax revenues are on the rise due to the enhanced efficiency of the Income Tax Department. The government’s focus remains on supporting taxpayers and treating them as vital contributors to the nation’s prosperity.
Under the new tax regime, individuals with an annual income of up to Rs 7.27 lakh will not be required to pay any tax. The government aims to consistently make taxation, rates, and technology more people-friendly.
For taxpayers who have not yet filed their ITR for the financial year 2022-23 (the assessment year 2023-24), it is crucial to do so before the deadline of July 31, 2023, to avoid penalties. Taxpayers have the convenience of filing their ITR online through the Income Tax Department’s website or with the assistance of a tax consultant. Additionally, taxpayers can check the status of their ITR filing online through the IT Department’s website. The government’s commitment to effective tax handling and a taxpayer-friendly approach remains at the forefront of its financial initiatives.
