IT rules change: Big news! Income tax will no longer bother small taxpayers, know what happened in the rule change

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IT rules change: Big news! Income tax will no longer bother small taxpayers, know what happened in the rule change
IT rules change: Big news! Income tax will no longer bother small taxpayers, know what happened in the rule change

Do not issue assessment notices for the business years from 2012-13 to 2014-15. Issuing directions to implement the apex court’s decision, the department said that the tax authorities will issue show cause notices.



Income Tax Department officials will no longer issue show cause notices to small taxpayers. Because the department has asked the field offices not to issue assessment notices for the business years from 2012-13 to 2014-15. Issuing directions to implement the apex court’s decision in respect of notices sent after the assessment period of three years, the department said that for FY 2016 and FY 2017 where the time limit for issue of such notice is 3 years. Within 30 days, the tax authorities will issue a show cause notice and inform the taxpayers to initiate reassessment proceedings within 30 days.

The Central Board of Direct Taxes (CBDT) has asked tax authorities to give two weeks time to taxpayers to respond to such notices, which can be extended on the request of the taxpayer in genuine cases. The Supreme Court had earlier this month ruled in favor of the IT department and upheld all revaluation notices issued on or after April 1, 2021.

The government in the budget of last year (2021-22) reduced the reopening time for IT assessment from 6 years to 3 years. However, the tax department sent several notices to reopen assessments, which are more than three years old. These notices were then challenged in several High Courts and the Income Tax Department then appealed to the Supreme Court to uphold such notices. Nangia & Co.

LLP Partner Shailesh Kumar said that CBDT issued this necessary direction to provide transparency to both the tax officers and taxpayers and to interpret the directions of Supreme Court and apply them equally in all 90,000 cases across India. Is.