Income Tax: Income Tax Department has given big relief to small taxpayers. The department has asked the field offices not to issue reassessment notices in case of tax savings of less than Rs 50 lakh for the financial years 2012-13, 2013-14 and 2014-15. For the 16th and FY 2016-17, the tax officer will issue a show-cause notice and inform the taxpayers of the commencement of the reassessment process within 30 days. The CBDT has asked the tax authorities to give two weeks time to the taxpayers to respond to these notices. In some cases, this time can be extended at the request of the taxpayer.
After the decision of the Supreme Court, the department issued instructions
The Income Tax Department has given these instructions after the Supreme Court’s decision on the notice sent regarding the reassessment period above three years. Earlier this month, the Supreme Court ruled in favor of the Income Tax Department challenging the issuance of notices for reassessment for a period of three to six years. The court had ruled in favor of all such notices issued on or after April 1, 2021.
where did the matter start
The central government in the last year’s budget (2021-22) reduced the period for reopening of IT assessments from six years to three years. However, even after this, the tax department had sent a notice for reassessment in cases related to tax above three years. These notices were challenged in several High Courts and then the Income Tax Department filed an appeal in the Supreme Court to continue with these notices, in which the Supreme Court ruled in favor of the department. However, after this, now the Income Tax Department has decided to give relief to small taxpayers.