The income tax department plans to send notices to taxpayers who have not filed tax returns despite tax deductions at source. The Central Board of Direct Taxes (CBDT) chairman, Nitin Gupta, stated that the department will send notices to individuals for whom they have definitive information, and the number of notices is expected to be in the few thousand.
The department is utilizing vast amounts of data to identify discrepancies and is urging taxpayers to update their returns. So far, the CBDT has collected ₹4,600 crore from 5.1 million updated returns. Efforts are being made to enhance taxpayer services, such as reducing refund time and resolving significant tax disputes. Additionally, a demand management center has been established in Mysuru, Karnataka, focusing on tax disputes over ₹1 crore. The CBDT is also planning to issue a detailed circular to implement the budget announcement on withdrawing outstanding small tax demands up to ₹25,000 until FY15. Currently, 60% of taxpayers have transitioned to the new tax regime introduced in the February 2022 budget.
Read more at: Income Tax Department sends 100,000 notices
The department intends to evaluate the response and filing patterns before considering any rate adjustments. Moreover, additional disclosures are being requested in income tax returns, largely stemming from recommendations by the Public Accounts Committee or the Election Commission of India. This includes details like the Legal Entity Identifier (LEI), contributions to political parties, and deductions for the maintenance of dependents with disabilities, among other information.
Read more at: Income Tax Notices: Taxpayers Alert! Income Tax Department is sending notices in cases up to 15 years old; Know the reason