If the taxpayers’ income tax returns are reopened, they should be informed in advance of the reasons for their investigation, the Central Direct Taxes Board (CBDT) chief PC Modi said on Friday. North said only cases that were not satisfactory would be reopened. The resumption deadline for tax matters has been reduced from 6 years to three years in the 2021-22 budget. At the same time, 10-year-old cases can be opened for serious tax fraud cases of taxes of Rs 50 lakh and above.
Taxpayers don’t know why this was done
In the Industry Body CII program, Modi said, cases have been reopened… taxpayers don’t know why this is done. That is why we made a provision that the reasons for the investigation should be communicated to the concerned taxpayer in advance and that the case would be reopened only in the event of a satisfactory response or coordination.
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The reason behind the CBDT president’s reopening of things in the budget is to make taxpayers more confident. Modi said, in cases where there is a lot of legal dispute, we have tried to rationalize them to the extent that they do not rely on the discretion of the assessment officer… Any case openings are mainly based on data analysis and risk assessment. In this the system has a role and tells you which cases to open.
The dispute resolution date does not extend beyond March 31
In the wake of the Dispute Resolution Committee’s announcement on the budget, Modi said most tax dispute cases are related to small taxpayers. That is why a limit has been set for the redress of their cases. Speaking in the Budget 2021-22, Finance Minister Nirmala Sitharaman said that a dispute resolution committee would be formed to help small taxpayers with income up to Rs 50 lakh to reduce legal disputes in case of disputed sum of Rs 10 lakh. Modi said the CBDT had set a deadline of February 28 to declare the dispute under the trust scheme. The date of dispute resolution is March 31st. It cannot be carried forward.
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