Income Tax dept begins scrutiny in reassessment cases for AY-2018-19:
- The income-tax (I-T) department has started scrutinising cases for the AY 2018-19 to determine which of them need to be reopened, a process that might result in a raft of tax notices.
- This follows this year’s Union Budget move to reduce the time limit for tax reassessment from 10 years to five in cases of escaped income. The new provision becomes effective on September 1 and will make past assessments for AY 2018-19 time-barred.
- The I-T department, following the uploading of the list of potential cases on Insight, will send a preliminary letter u/s 148A of the Income Tax Act, pursuing responses from the concerned taxpayers. The final notice of reassessment shall be furnished based on the answers of the taxpayer.