In a bid to ensure compliance and address tax evasion, the Income Tax Department has issued new guidelines regarding the investigation of cases involving non-responsive taxpayers.
The department will initiate compulsory investigations into cases where taxpayers have failed to respond to the notices sent by the department.
Deadline for Notice Response by June 30
Under the revised guidelines, tax authorities are required to send notices under section 143(2) of the Income Tax Act to taxpayers by June 30, highlighting any discrepancies in reported income.
It is imperative for taxpayers to provide relevant documents and information in response to these notices.
Cases Flagged by Law Enforcement Agencies or Regulatory Authorities
The guidelines also state that investigations will be initiated in cases where specific information regarding tax evasion has been provided by law enforcement agencies or regulatory authorities.
The Income Tax Department will closely scrutinize such cases to ensure compliance with tax laws.
Referral to National Faceless Assessment Center (NAFAC)
In situations where taxpayers fail to file a return 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 clarification or additional information in cases where returns have been filed.
Information Required for Non-Filing Cases
Taxpayers who have not filed their returns will be requested to provide the necessary information in the prescribed manner.
The Income Tax Department will compile a consolidated list of cases in which taxpayers claim income tax exemptions or deductions despite the cancellation or withdrawal of such exemptions by the competent authority.
Notices via NAFAC under Section 143(2)
The guidelines highlight that notices under section 143(2) of the Act will be issued to taxpayers through the National Faceless Assessment Center (NAFAC).
This step aims to streamline the assessment process and ensure effective communication between taxpayers and tax authorities.
Failure to respond to the notices within the specified timeframe may lead to further investigations and potential penalties for non-compliance.
Taxpayers are strongly urged to adhere to the guidelines and promptly address any notices received from the Income Tax Department to avoid legal consequences.
