The Central Board of Direct Taxes ( CBDT ), under the leadership of Chairman Nitin Gupta, is gearing up to issue notices to around 15 million individuals who have failed to file tax returns despite having taxes deducted at the source from their incomes.
Gupta revealed in an interview that the department plans to send notices selectively, focusing on cases backed by concrete information, with just a few thousand notices anticipated.
The robust data influx received by the Income Tax Department has enabled the identification of inconsistencies, prompting proactive outreach to taxpayers to update their returns in case of discrepancies.
Gupta highlighted that the department has already collected ₹4,600 crore from 5.1 million updated returns. Stressing a commitment to improving taxpayer services, Gupta mentioned initiatives such as expediting refund processes, updating returns, and resolving significant tax disputes.
An illustrative example of the CBDT’s proactive stance is the establishment of a demand management center in Mysuru, Karnataka. Initially focused on tax disputes exceeding ₹1 crore in Karnataka, this center has expanded its scope nationwide, resolving 250,000 cases since its launch in 2022. Additionally, the CBDT plans to issue a comprehensive circular to implement the budget proposal related to withdrawing small outstanding tax demands up to ₹25,000 until FY15.
Discussing the transition in the tax regime, Gupta highlighted that 60% of taxpayers have embraced the new regime introduced in the February 2022 budget. The department intends to closely monitor taxpayer responses and filing trends before considering any adjustments to tax rates.
The CBDT Chairman also clarified that the recent requirement for high-income taxpayers to furnish additional details in their returns, is primarily based on recommendations from the Public Accounts Committee or the Election Commission of India.
These additional disclosures cover 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.
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