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Taxpayers should stay alert! The Income Tax Department is set to conduct inspections

Income Tax: The income tax filing process has commenced, and it is common for individuals to receive notices from the Income Tax Department. In recent developments, the department has released guidelines pertaining to cases that will be subject to investigation.

As per the guidelines, investigations will be conducted on income tax payers who have failed to respond to the notices issued by the department. This ensures that necessary action is taken against non-compliant individuals.

Income Tax Department

The Income Tax Department has announced that it will investigate cases related to tax evasion based on specific information received from law enforcement agencies or regulatory authorities. According to the guidelines, tax authorities will send notices to income tax payers under section 143(2) of the Income Tax Act regarding income discrepancies by June 30. Subsequently, the income tax payers must provide relevant documents to address these discrepancies.

If no return has been filed in response to the notice under section 142(1) of the Act, the case will be referred to the National Faceless Assessment Center (NAFAC) for further action. Section 142(1) empowers tax authorities to issue notices and seek clarifications or information when a return is filed. In cases where returns have not been filed, income tax payers are required to provide necessary information as per the prescribed procedure.

Additionally, the Income Tax Department will publish a consolidated list of cases where income tax payers claim tax exemption or deduction despite the cancellation or withdrawal of exemption by the competent authority. Notices under section 143(2) of the Act will be sent to income tax payers through NAFAC as per the guidelines.


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