Notices To Be Issued For Not Filing ITRs: CBDT Chairman

New Delhi, Feb 6 (KNN) The Central Board of Direct Taxes (CBDT) chairman, Nitin Gupta, disclosed that the income tax department is preparing to dispatch notices to individuals who have neglected to file their tax returns, despite tax deductions at the source on their incomes. 

Gupta stated that approximately 15 million taxpayers fall into this category. "We will only send notices to those taxpayers for whom we have concrete information," stated Gupta, indicating that the number of notices will be limited to ‘a few thousand’ as reported by ET.

The substantial influx of data received by the Information Technology (IT) department is aiding in identifying discrepancies. Gupta emphasised that the department is proactively reaching out to taxpayers to rectify any omissions in their returns, resulting in a collection of Rs 4,600 crore from 5.1 million updated returns thus far.

"Our primary objective is to enhance taxpayer services, whether by expediting refund timelines, updating returns, or resolving significant tax disputes," Gupta affirmed.

Gupta assured that taxpayers need not take any action, as the CBDT will proactively reach out to them.

Illustrating this commitment, Gupta highlighted the establishment of a demand management centre in Mysuru, Karnataka, by the CBDT. 

This centre focuses on tax disputes exceeding Rs 1 crore, facilitating discussions between taxpayers, chartered accountants, and assessing officials to reach mutually agreeable assessments.

Initially confined to Karnataka, the centre has expanded its scope nationwide and has successfully resolved 250,000 cases since its inception in 2022.

Furthermore, the CBDT is set to issue a comprehensive circular to implement the budget announcement concerning the withdrawal of outstanding small tax demands, up to Rs 25,000, until FY15. This move, with a cumulative threshold of Rs 1 lakh crore, encompasses penalties and interest.

Regarding tax regime transitions, Gupta revealed that 60 per cent of taxpayers have adopted the new tax regime announced in the February 2022 budget. The department intends to assess responses and filing patterns further before considering any rate adjustments.

He also clarified that the additional disclosures requested in income tax returns primarily stem from recommendations by the Public Accounts Committee or the Election Commission of India.

(KNN Bureau)