Some Taxpayers to Receive Notices Soon for Non-filing of Income Tax Returns; CBDT Chairman Nitin Gupta.
The Income Tax Department is set to issue notices to individuals who haven’t filed tax returns despite having taxes deducted at source from their incomes, according to Nitin Gupta, Chairman of the Central Board of Direct Taxes (CBDT). Gupta disclosed to ET that there are approximately 15 million such taxpayers, and the department will be sending notices selectively, targeting those cases where they possess concrete information, amounting to just a few thousand notices.
The influx of extensive data received by the IT department has facilitated the detection of inconsistencies, prompting outreach efforts to taxpayers for updating their returns if any discrepancies are found. Gupta highlighted that the department has already amassed ₹4,600 crore from 5.1 million updated returns. Emphasizing a commitment to enhancing taxpayer services, Gupta mentioned endeavors such as expediting refund processes, updating returns, and resolving significant tax disputes.
Gupta cited the establishment of a demand management center in Mysuru, Karnataka, as an example of the CBDT’s proactive approach. This center, originally focused on tax disputes exceeding ₹1 crore in Karnataka, has expanded its scope nationwide, resolving 250,000 such cases since its inception in 2022. Additionally, the CBDT plans to issue a comprehensive circular to enact the budget proposal concerning the withdrawal of small outstanding tax demands up to ₹25,000 until FY15.
With regard to tax regime transition, Gupta noted that 60% of taxpayers have shifted to the new regime introduced in the February 2022 budget. The department intends to monitor taxpayer response and filing trends before contemplating any adjustments to tax rates.
Moreover, Gupta mentioned that the recent requirement for high-income taxpayers to furnish additional details in their returns, as reported by ET on February 3, primarily stems from recommendations made by the Public Accounts Committee or the Election Commission of India. These additional disclosures encompass various aspects, including providing the Legal Entity Identifier (LEI), details of contributions to political parties, and information on deductions claimed for dependent care, including medical treatment for disabilities.