Now news of big relief has come to the small taxpayers. In fact, the CBDT has asked the officials not to open 6 years old files with tax less than Rs 50 lakh. That is, big relief has been given to such taxpayers by the government. In such a situation, if any taxpayer’s tax is less than 50 lakhs during the financial years 2012-13, 2013-14 and 2014-15, then no re-assessment notice will be sent to him. Let us inform that, in the Budget 2021-22, the Central Government had reduced the time of reopening of Income Tax Assessment from 6 years to 3 years, although the Income Tax Department has even after this in all cases related to tax above 3 years. Notice was sent for re-assessment.
These taxpayers did not get relief
6-year old files will not be served notices, but CBDT said show cause notices can be sent for 2015-16 and 2016-17.
For this, within 30 days, the process of reassessment should be started and information should be given to the taxpayer. The CBDT has also asked the tax authorities to give two weeks time to the taxpayers for re-assessment.
CBDT has also said with this that, if any request for extension comes from the taxpayer, then the time limit can be extended.
Let us inform that, in the budget, the government had reduced the time of reopening of Income Tax Assessment from 6 years to 3 years, along with notices were also sent for reassessment. Thereafter these notices were challenged in the court.
Following the challenge, the Income Tax Department filed an appeal in the Supreme Court for continuance of these notices. The top court had ruled in favor of the Income Tax Department, however, after this, the Income Tax Department has now decided to give relief to the small taxpayers.