Income Tax Return Filing: The Central Board of Direct Taxes (CBDT) has announced its strategy to dispatch notices to individuals who have not filed tax returns, even though having tax deductions at source (TDS). In an exclusive interview with Economic Times (ET), CBDT Chairman Nitin Gupta disclosed that approximately 1.5 crore taxpayers fall into this category. The notices, targeted based on precise information, are expected to be issued to a select few thousand taxpayers.
Gupta highlighted the department’s use of advanced data analytics, enabling the identification of discrepancies and facilitating outreach to taxpayers for updating their returns. Notably, the CBDT has successfully collected ₹4,600 crore from 5.1 million updated returns, emphasizing its commitment to improving taxpayer services.
According to ET, Gupta stated, “We will be sending notices to only those taxpayers for which we have definitive information.” He added that the focus remains on enhancing taxpayer services, streamlining refund processes, updating returns, and resolving significant tax disputes.
In shedding light on the CBDT’s initiatives, Gupta shared insights into the demand management center located in Mysuru, Karnataka. Originally designed for disputes exceeding ₹1 crore within the state, the center has expanded its jurisdiction nationwide since its inception in 2022. The collaborative approach, involving chartered accountants, assessing officials, and taxpayers, has successfully resolved 250,000 matters.
As reported by ET, Gupta elaborated on the CBDT’s plan to issue a detailed circular implementing the budget announcement on the withdrawal of small tax demands, up to ₹25,000 until FY15. The cumulative threshold, including penalties and interest, is set at ₹1 lakh crore.
Gupta also discussed the transition of taxpayers to the new tax regime introduced in the February 2022 budget. According to ET, Gupta said “approximately 60% have embraced the new income tax regime. Gupta emphasized the need for a wait-and-watch approach to evaluate responses and filing patterns before contemplating any rate adjustments. Source