Finance Minister Nirmala Sitharaman Targets Efficient Handling Of One Lakh Income Tax Notices By March 2024

New Delhi, 30th July 2023: Finance Minister Nirmala Sitharaman recently announced that the income tax department aims to complete the assessment of one lakh income tax notices related to mismatched disclosed income and departmental records by March 2024. These notices were sent to individuals with income above Rs 50 lakh, where a discrepancy was found between the income disclosed in their Income Tax Return (ITR) and the information available with the department.

Additionally, the tax department has sent notices to non-filers of tax returns. As per the income tax law, officials possess the power to review previous assessments within six years. However, the Minister assured that tax assesses will no longer face reopening of tax assessments after six years. Reopening assessments between the 4th and 6th year will only occur under specific circumstances, approval from a Principal Chief Commissioner level officer will be mandatory for cases where the income exceeds Rs 50 lakh.

The Finance Minister highlighted that about 1 lakh notices have been issued based on available information, targeting individuals with income above Rs 50 lakh and meeting certain criteria. In May 2023, following a Supreme Court judgment, the Central Board of Direct Taxes (CBDT) completed the scrutiny assessment of 55,000 notices, as emphasized by her.

Sitharaman further emphasized that the government has not increased income tax rates, yet tax revenues are rising due to the Department’s enhanced efficiency. The focus is on supporting taxpayers and treating them as wealth creators.

Under the new tax regime, people with an annual income of up to Rs 7.27 lakh will not be required to pay any tax. The government’s approach is consistently aimed at making 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 essential to do so by the deadline of July 31, 2023, to avoid penalties. The ITR can be filed online through the Income Tax Department’s website or with the help of a tax consultant. Taxpayers can also check the status of their ITR filing online through the IT Department’s website.