Income Tax News: The Income Tax Department is gearing up to send notices to individuals who have failed to file their Income Tax Returns (ITR). According to reports from Economic Times via Business Today, these notices will also extend to those individuals from whom tax has been deducted at source (TDS), yet they have not fulfilled their obligation of filing the ITR.
Focus on Targeted Notices
Chairman of the Central Board of Direct Taxes (CBDT), Nitin Gupta, emphasized that the department will be selective in sending out these notices, targeting individuals for whom there is concrete information available. The department’s focus ranges from streamlining the refund process to updating returns and resolving significant tax disputes, all with the aim of enhancing services for taxpayers.
Initiatives by CBDT
Gupta highlighted the establishment of a Demand Management Center in Mysuru, dedicated to resolving tax disputes involving amounts exceeding Rs 1 crore. This initiative allows taxpayers to engage with Chartered Accountants (CAs) and officials to find resolutions for these disputes. Initially confined to Karnataka, this center now caters to tax disputes across India.
Relief Measures Announced in Interim Budget
In the Interim Budget of 2024, Finance Minister Nirmala Sitharaman announced measures to alleviate the burden on taxpayers. Notably, outstanding tax demands up to Rs 25,000 for the period up to the financial year 2009-10, and up to Rs 10,000 for the financial years 2010-11 to 2014-15, are to be withdrawn. This move aims to address a multitude of small, unverified, unresolved, or disputed direct tax demands, some of which date back to 1962. It is hoped that approximately one crore taxpayers will benefit from this initiative.
