Income Tax: Important news for small taxpayers, reassessment notices will not be issued for these 3 years, CBDT instructions

Income Tax: Income tax officers have been asked not to issue reassessment notices for the financial years 2012-13, 2013-14 and 2014-15 to small taxpayers whose tax-avoidable income is less than Rs 50 lakh.

Income Tax: Important news for small taxpayers. Income tax officers have been asked not to issue reassessment notices for 3 years for the financial years 2012-13, 2013-14 and 2014-15 to small taxpayers whose tax-avoidable income is more than Rs 50 lakh. is less. According to the news of PTI, the Central Board of Direct Taxes ie CBDT has issued this instruction to the Income Tax Officers.

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According to
the news, in respect of the notices sent after the three-year reassessment period, the department said that for the financial year 2016 and for the financial year 2017. Where the deadline for issuing such notices falls within 3 years, the tax authorities will issue a show cause. Also, the tax officers will give necessary information to these taxpayers to initiate reassessment proceedings within 30 days. 

The decision was in favor of the Income Tax Department The
Central Board of Direct Taxes (CBDT) asked the tax authorities to give two weeks time to the taxpayers to respond to such notices, which can be carried forward on the request of the taxpayer in genuine cases. May go. Let us tell you, earlier this month, the Supreme Court had ruled in favor of the Income Tax Department. In this decision, all reassessment notices issued on or after April 1, 2021 were upheld. There is also talk of reopening the assessment for up to 6 years.

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Then the department went to the Supreme Court
, the government in the budget of last year (2021-22) had reduced the reopening time for income tax assessment from 6 years to 3 years. However, the tax department also sent several notices to reopen the assessments, which are more than 3 years old. These notices were then challenged in several High Courts and then the Income Tax Department appealed to the Supreme Court to uphold such notices.

Said the instructions
Sahih Nangia & Co. LLP Partner Shailesh Kumar said that this is a very welcome circular from the CBDT providing clarity to both the taxpayers and the tax officers. Similarly, Rajat Mohan, Senior Partner, MRG & Associates, said that the circular will clear all the issues arising out of the dispute related to the Finance Act 2021 and subsequent reassessment of the apex court's decision.