-
Aug 01, 2024
-
Income tax department is about to send a deluge of tax notices this month
A flurry of income tax (I-T) notices loom over the next one month amid fears that many could slip through the tax net.
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 Rs. 50 lakh. Till now, they could reassess up to 10-year-old cases. The time limit is three years for an amount less than Rs. 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.
|