The Finance Minister, Nirmala Sitharaman while announcing the Budget 2021-22 has proposed to reduce Time for Income Tax Proceedings.
The Finance Minister in the Union Budget 2021 recommendations has proposed to reduce this time-limit for re-opening of assessment to 3 years from the present 6 years.
In serious tax evasion cases too, only where there is evidence of concealment of income of Rs. 50 lakh or more in a year, can the assessment be reopened up to 10 years.
Even this reopening can be done only after the approval of the Principal Chief Commissioner, the highest level of the Income Tax Department.
Presently, an assessment can be re-opened up to 6 years and in serious tax fraud cases for up to 10 years. As a result, taxpayers have to remain under uncertainty for a long time.
The Government came out with the Direct Tax Vivad Se Vishwas Scheme to give taxpayers an opportunity to settle long pending disputes and be relieved of further strain on their time and resources. The response from the taxpayers has been the best ever as over one lakh ten thousand taxpayers have already opted to settle tax disputes of over 85,000 crores under this Scheme.
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