The Central Government made changes in Section 148A of Income Tax in the Union Budget 2024 presented in the Lok Sabha last month. This notice is related to reopening of income tax assessment. If your income is more than Rs 50 lakh, the Income Tax Department has the right to reopen the assessment for a period of 10 years. At the same time, Section 148A of Income Tax allows opening of assessment for 3 to 4 years on income of Rs 50 lakh. In simple words, this Act gives the Income Tax Officer the right to initiate investigation if he suspects any taxpayer of tax evasion.
Proposal to change the deadline
In fact, an important change has been proposed in the Union Budget 2024, the purpose of which is to reduce the period of 10 years to five years (or six financial years) for cases with income of more than Rs 50 lakh. However, there will be no change in the time limit for cases with income less than Rs 50 lakh.
148A notice may be issued by this date
For assessment year 2018-19 in cases where the income escaping assessment is Rs 50 lakh or more, the deadline for issue of notice under section 148 or issue of order under section 148A has been fixed as August 31, 2024 .
Protocol will have to be followed before the notice
Let us tell you that according to the provisions introduced in the 2021 budget, to issue Section 148 or 148A notice, the officer must have intelligence related to tax evasion and it is mandatory to follow the protocol made. Before issuing a notice under Section 148, the taxpayer must be given a full opportunity to present his side.
