Relief for Small Taxpayer: In the Budget 2021-22, the Central Government had reduced the time for reopening of Income Tax Assessment from 6 years to 3 years. However, even after this, the Income Tax Department had sent a notice for re-assessment in all cases related to tax above 3 years.
Now there is a big relief for small taxpayers. CBDT has asked officials not to open 6 years old files with tax less than Rs 50 lakh. According to this, 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.
they will notice
However, the CBDT said that show cause notices can be sent for 2015-16 and 2016-17. For this, start the process of reassessment within 30 days and inform the taxpayer about it. The CBDT has also asked tax officials to give two weeks time to taxpayers for re-assessment.
Also, if there is a request to extend the time from their side, then the time limit can also be extended. In fact, in the budget of 2021-22, the central government had reduced the time for reopening IT assessment from 6 years to 3 years. However, even after this, the Income Tax Department had sent a notice for re-assessment in all cases related to tax above three years.
Notices were challenged
These notices were challenged in the court. Then the Income Tax Department filed an appeal in the Supreme Court for continuation of these notices. The Supreme Court had ruled in favor of the Income Tax Department. However, after this, now the Income Tax Department has decided to give relief to small taxpayers.