Income Tax Department Issues New Guidelines for Investigations
The Income Tax Department has issued new guidelines regarding the cases to be taken under the ambit of ‘investigation’. These guidelines state that cases of income tax payers who have not responded to notices sent through the department will be compulsorily investigated.
Investigating Cases of Tax Evasion
The department will also investigate cases where specific information related to tax evasion has been made available through any law enforcement agency or regulatory authority. Tax authorities will send notices under section 143(2) of the Income Tax Act to income tax payers about discrepancies in income by June 30. After receiving the notice, the income tax payer will have to present relevant documents.
National Faceless Assessment Center Takes Action
In cases where no return has been furnished in response to the notice under section 142(1) of the Act, the case shall be referred to the National Faceless Assessment Center (NAFAC), which shall take further action. Section 142(1) empowers tax authorities to issue a notice and seek clarifications or information in case the return is filed. In cases where returns have not been filed, they are asked to furnish necessary information in the prescribed manner.
Consolidated List of Cases
The Income Tax Department will issue a consolidated list of cases in which the income tax payer claims income tax exemption or deduction despite cancellation or withdrawal of exemption by the competent authority. The guidelines state that notice under section 143(2) of the Act will be given to the income tax payers through NAFAC.
Conclusion
These new guidelines are a step towards ensuring that income tax payers comply with the law and respond to notices issued by the department. The National Faceless Assessment Center will take further action in cases where returns have not been filed or necessary information has not been furnished. The Income Tax Department will continue to investigate cases of tax evasion and issue notices as necessary.
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Sorted points by DelhiBreakings.com team.
👉 Income Tax Department will investigate cases of income tax payers who have not responded to notices sent through the department
👉 Cases with specific information related to tax evasion made available through law enforcement or regulatory authority will also be investigated
👉 Tax authorities must send notices to income tax payers about discrepancies in income by June 30 under section 143(2) of the Income Tax Act
👉 Cases where no return has been furnished in response to notice under section 142(1) of the Act will be referred to National Faceless Assessment Center (NAFAC) for further action
👉 Income Tax Department will issue consolidated list of cases where tax exemption or deduction claimed despite cancellation or withdrawal of exemption by competent authority
👉 Notice under section 143(2) of the Act will be given to income tax payers through NAFAC.
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