Assessments to be reopened beyond 3 years only if escaped income is more than Rs 50 lakh
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
The Union Budget for 2024-25 has proposed provisions to simplify the provisions for reopening and reassessment.
Finance Minister Nirmala Sitharaman announced that an assessment hereinafter can be reopened beyond three years from the end of the assessment year only if the escaped income is Rs 50 lakh or more, up to a maximum period of five years from the end of the assessment year.
Even in search cases, a time limit of six years before the year of search, as against the existing time limit of ten years, is proposed. This will reduce tax uncertainty and disputes, she said.
“While our concerted efforts to reduce pendency of appeals at various appellate fora are beginning to show good results, it will continue to engage our highest attention,” the Finance Minister said.
She said that to dispose of the backlog of first appeals, I plan to deploy more officers to hear and decide such appeals, especially those with large tax effects.
“For the resolution of certain income tax disputes pending in appeal, I am also proposing Vivad Se Vishwas Scheme, 2024,” the Finance Minister said.
“Further, I propose to increase monetary limits for filing appeals related to direct taxes, excise and service tax in the Tax Tribunals, High Courts and Supreme Court to Rs 60 lakh, Rs 2 crore and Rs 5 crore respectively,” she said.
“To reduce litigation and provide certainty in international taxation, we will expand the scope of safe harbour rules and make them more attractive. We will also streamline the transfer pricing assessment procedure,” she added.
