This will happen if there is a mess in the IT return file, one lakh hit notice, change in re-assessment too

The last date for filing income tax returns is approaching. In that case, Finance Minister Nirmala Sitaram has given an information related to ITR filing. Union Finance Minister Nirmala Sitharaman said income tax return filers have concealed or under-declared their income, prompting notices to about one lakh people.

By March 2024, all the one lakh notices will be settled

Addressing a program organized on the 164th Income Tax Day, Sitharaman said, "The Central Board of Direct Taxes has assured me that all one lakh notices will be settled by March 2024. The notice has been issued to people with income above Rs 50 lakh based on the information available with the department.

Re-assessment will be done only in these circumstances

Under the Income Tax Act, the department can reassess tax returns for up to six years. Regarding this, Sitharaman said that the tax assessment of any person will not be reopened after six years. Re-assessment in fourth, fifth and sixth years can also be done under certain circumstances.

The time limit for re-assessment has been reduced from 6 years to 3 years

The Finance Act 2021 has modified the revaluation provisions. The time limit for reopening assessment has been reduced from 6 years to 3 years. However, if at least Rs. 50 lakhs if there is evidence of tax evasion, notice can be issued only within 10 years from the end of the relevant assessment year.