Income tax: Many people think that once any mistake of income tax (ITR filing rules) is suppressed, then no one asks. Let us tell you that this thinking of yours can cost you a lot. The Income Tax Department keeps an eye on your every financial activity. If the slightest mistake is seen, the Income Tax Department will take action and it will be difficult for you to answer. If you maintain transparency in income tax cases from the beginning, then it will be better for you.

This is how you can come on the radar of the department-

Filing Income Tax Returns is a task for taxpayers to do with caution and alertness. In this, the annual gross income has to be shown correctly. If tax exemption is taken with the help of fake documents or income is hidden, then the Income Tax Department will take immediate action. Not only this, but in old cases you can get an Income Tax Notice. You can come on the radar of the department at any time.

What is the rule after 3 years-

If there is any mistake in ITR, then the tax department can send notice to the taxpayer for up to three assessment years. You may be asked to pay tax by the department. You will also have to respond to the notice (Income Tax Notice). This rule is in normal cases.

The department can investigate the case after 10 years-

Of course, the Income Tax Department cannot investigate normal cases after 3 years, but the department has the right to open 10-year-old cases in serious cases and cases of income of more than Rs 50 lakh. That is, you can get a notice even on the Income Tax return filed 10 years ago.

However, the department will have to gather evidence that income has been hidden in the ITR, that is, tax has been evaded. The Assessing Officer has the right under Section 148 of the Income Tax Act, 1961 to send a notice (Income Tax Notice) to a taxpayer for re-evaluation of ITR or reassessment of the case (reassessment rules).

Delhi High Court had given this decision-

Delhi High Court made an important comment two years ago regarding the reopening of old cases of taxpayers by the Income Tax Department. The court had said that the Income Tax Department can reopen only such cases for Income Tax Reassessment after 10 years,

in which the hidden income is above 50 lakhs. That is, in normal cases, the department will not send a notice. This causes unnecessary trouble to the taxpayers. If the hidden income is less than 50 lakhs and three assessment years have passed, then such cases cannot be reopened (ITR reopen time limit).

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