Income Tax Dept. sends 1,00,000 Notices over under reported Income

Finance Minister Nirmala Sitharaman announced on Monday that the income tax department has issued one lakh notices to taxpayers who had either not disclosed or underreported their income.

In the majority of these cases, taxpayers either concealed or under-declared their income. These returns are four to six years old, and the Income Tax Department will finalise all of them by March 31, 2024. Taxpayers may now easily prevent any type of fraud.

This is due to the revenue department’s use of technology to check ITR. In addition, 360-degree profiling is being used to validate taxpayer claims. Analytics and data mining are also used.

On the occasion of Income Tax Day, Nirmala Sitharaman stated that notices had been sent to lakhs of taxpayers. These individuals either reported a low income or did not reveal it on their ITR. Those messages were not issued for no reason.

The Income Tax Department will handle all issues in an open and responsible way. It stated that taxpayers’ work has grown easier with the help of technology, and they are paying their taxes on time. People are learning about all of their sources of income. This will help to reduce tax conflicts.

In the previous 14 months, almost one lakh taxpayers have received notices. According to an Income Tax Department official, the majority of these persons have an annual income of more than Rs.50 lakh. Under the Income Tax Act, authorities may reopen cases older than six years.

In May 2023, the CBDT concluded its investigation of 55 thousand notices. These notices were issued following the Supreme Court’s judgement. Now people cannot cheat the system. Our stand on this is clear, said Sitharaman.