Finance Minister Nirmala Sitharaman announced on July 24, 2023 that the Income Tax Department has sent one lakh notices in cases of misrepresentation of income. The notices were sent to individuals and businesses who have either not filed their tax returns or have underreported their income. The notices are for old returns filed 4-6 years earlier, and the department will complete these notices by March 31, 2024.
Sitharaman said that the notices were sent after the department received information from various sources, including banks, financial institutions, and government agencies. She also said that the department is taking a "tough stance" on tax evasion, and that those who are caught misrepresenting their income will face serious consequences.
The one lakh notices are a significant increase from the number of notices sent in previous years. In 2022, the department sent around 50,000 notices for misrepresentation of income. The increase in the number of notices is a sign that the department is stepping up its enforcement efforts.
The notices have been met with mixed reactions. Some people have welcomed the department's efforts to crack down on tax evasion, while others have criticized the notices as being too harsh. It remains to be seen how the notices will affect tax compliance in India.
Here are some additional details about the notices:
- The notices were sent to individuals and businesses with income above Rs. 50 lakh.
- The notices require the recipients to provide additional information about their income and assets.
- The recipients of the notices have the right to appeal the notices to the Income Tax Appellate Tribunal.
The notices are a reminder that the Income Tax Department is serious about tax compliance. If you have not filed your tax returns or have underreported your income, you may be at risk of receiving a notice from the department. It is important to consult with a tax advisor to ensure that you are in compliance with the law.
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