New Delhi: The Income Tax Department is likely to reopen pending cases under Section 148 of the Income Tax Act before August 31, 2024. If a taxpayer has more than Rs 50 lakh of undisclosed income, the I-T department is likely to send them a tax notice. This follows Finance minister Nirmala Sitharman’s announcement that old cases beyond 5 years will not be reopened by the I-T department.
What FM said on reassessment of old cases in Budget 2024
Until August 31, 2024, the I-T department is empowered to open cases dating back 10 years. Similarly, disputes related to AY2018-19 would have been eligible for reopening until 2029 under the old rules, the ET reported, citing Nangia Anderson India executive director Sanjoli Maheshwari. However, after the Budget announcement these cases cannot be opened after September 1, 2024.
Time limit for old cases under sections 148, 148A of I-T Act
While the time limit for normal cases is 3 years from the end of the assessment year under Section 148 and 148A, in cases where income of Rs 50 lakh and above escaped assessment, the timeline has been brought down to 5 years under Section 148A and 5 years 3 months under Section 148, according to the I-T Act.
Who is likely to receive income tax notice under section 148A?
Under section 148A, taxpayers who earn Rs 50 lakh or more, are likely to receive a tax notice if they escaped assessment in AY18-19, since August 31, 2024, is the last date for sending notices under this rule. Those earning less than Rs 50 lakh are unlikely to receive a tax notice under this rule since the deadline for AY18-19 was 3 years from the assessment year.
Taxpayers who receive the notice under Sections 148 and 148A are likely to receive time until December 31, 2025, to resolve the case under section 149 of the I-T Act, the ET reported, citing CA Suresh Surana. If a taxpayer fails to furnish further details under sections 148 and 148A, they may be liable to a penalty of Rs 10,000 under Section 272A of the Income Tax Act. The penalty may range from 50 per cent to 200 per cent of the tax payable assessed by the taxman on any income that was underreported or misreported, according to the report.
Under Sections 148 and 148A of the Income Tax Act, taxpayers may receive a notice from the tax department if they have underreported or misreported incomes in this tax bracket. Know more. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
