The Taxpayers’ Trust In The Income Tax Department Will Increase
The taxpayers’ trust in the income tax department will increase, The tax department will show the reason before the assessment.
The Central Board of Direct Taxes (CBDT) has clarified that before resuming the tax assessment in a case, the taxpayer will be informed as to the reasons for which his case is being opened.
Taxpayers will be given the facility to respond before starting the case. The case will not be initiated if the department is satisfied with their reply.
CBDT chief PC Modi said these things while addressing industry organization CII on Friday. He said that this step will increase the trust of taxpayers towards the Income Tax Department.
In the Budget 2021-22, the deadline for a reassessment of suspected income tax cases has been reduced from six years to three years. However, any irregularity case above Rs 50 lakh can be investigated at any time for the next 10 years.
This time in the budget, Finance Minister Nirmala Sitharaman also conveyed the decision to form a Dispute Resolution Committee (DRC) to settle the matter related to small taxpayers.
The Confidence Act, 2020 has also proved successful with the dispute towards tax resolution.
35,000 cases settled due to faceless assessment
Central Board of Direct Taxes (CBDT) chief PC Modi said that 35,000 cases related to income tax have been settled under the Faceless Assessment Scheme.
A total of two lakh cases were brought before the CBDT under the scheme. Out of the 35,000 cases disposed of, only 1,000 such cases have come up in which the amount of tax has to be increased.
The rest of the cases were closed by taking solutions under the prescribed procedure.
Under the faceless assessment scheme, the taxpayer does not have to visit the income tax office to solve his tax-related problem.
A centralized electronic system on tax frauds selects the case and randomly sends it to any income tax team in the country.
Other officers also keep a watch on the disposal of the case. In this way, neither side gets to meet each other in the whole process. This process is convenient as well as works to curb corruption.
