Deluge of income tax notices likely this month
income tax (I-T) notices loom over the next one month amid fears that many could slip through the tax net.
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Revenue officials have alerted the central authorities that it would be virtually impossible to reopen old tax returns for some of the past years before September 1, 2024, when the new law on reassessment comes into force.
Under the amended regulation announced in the budget, the taxman can go back not more than five years to reassess a taxpayer's records if the escaped income is at least ₹50 lakh. Till now, they could reassess up to 10-year-old cases. The time limit is three years for an amount less than ₹50 lakh.
Typically, the tax office would shoot reassessment notices around March for the relevant past year which was getting time-barred. Now, with the budget lowering the maximum reassessment period to five years, tax officials would just have a month till August 31, 2024, to send notices.
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The I-T department builds reassessment cases on the basis of information from banks, registrar of properties, and investigation wing's inputs on search findings. Under the present circumstances, they would have to compile and corroborate data on tax and income mismatches over the next few weeks for the financial years 2013-14 to
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