News | Tax

No Notice for AY14 to AY16 if Untaxed Amount Less Than Rs 50 lakh: CBDT's Instructions to Field Officials

In a relief for small taxpayers, the Central Board of Direct Taxes (CBDT) has said no reassessment notices would be issued for assessment years (AY) 2013-14, 2014-15 and 2015-16 if the income escaping assessment and represented in the form of an asset was less than Rs50 lakh. 
 
The CBDT  has issued a detailed set of instructions to field officials in the light of the recent Supreme Court order. The apex court had invoked its extraordinary powers under Article 142 of the Constitution to uphold all reassessment notices issued after 31 March 2021, by the income-tax department reopening assessments going back six years. 
 
After the recent Supreme Court order, tax practitioners had raised questions about the implementation of the order, which has implications for tens of thousands of taxpayers. 
 
The CBDT has said for subsequent years, AY2016-17 and AY2017-18, where timeline to issue notices under Section 148, falls within a period of three years, tax officers will issue show cause notice and provide material/information to taxpayers for initiating reassessment proceedings within 30 days or by 2nd June. 
 
Taxpayers will get two weeks to respond to such show cause notices, and can also request to extend the timeline. The notification directed officials to consider a request for time extension by an assessee to respond on the merit of the case.
 
This is a much welcome circular by CBDT providing clarity to both taxpayers and tax officials.
 

User

  Loading...
  Loading...

To continue


Please
Sign Up or Sign In
with

Email

We are listening!

Solve the equation and enter in the Captcha field.

Changes in Our Business Model
 
 
Greetings from Moneylife Advisory Services
 
Between financial years 2019-21, SEBI has come up with extensive changes to investor advisor regulations. On Sep 23, 2020, SEBI had issued new additional guidelines. This comes just two months after extensive changes announced in July 2020. Earlier, in December 2019 there was an ad hoc circular
 
As a result of these changes, IAs, cannot accept fees through credit cards, will have to sign a 26-clause investor agreement, have to maintain physical record written & signed by client, telephone recording, emails, SMS messages and any other legally verifiable record for five years. IAs were already asked to record the suitability and rationale for every piece of advice given, sign them and store them for five years.
 
While these extensive and frequent changes, designed to strengthen the conduct of IAs are well-meaning, these have sharply increased compliance efforts and cost. We, being online advisors, find many of changes harder to implement, compared to advisors working in the physical space. We will have to have an army of advisors, administrative and tech staff to be compliant. If we do this, we will have to divert money to these areas and the cost of our service will double. We want to remain the least-cost service in the market to benefit more and more people. In the circumstances, we are forced to change our business model from “advisory” to “research”. This will mean the following:
 
What remains the same:
  • Recommendations on insurance, investment and Lion stocks, will continue as a part of the MAS premium subscription. Our strength has always been research and this will remain available to you through our recommendations.
  • The magazine and all textual content will remain as part of the service
  • We will have to suspend the restructuring tool.
 
What changes:
  • The interactions in Ask / Handholding will offer investment advice but not specific to your situation. It will offer information on investment products and also clarify your doubts about various financial products. It will be a forum for information, not for advice. This will be implemented with immediate effect and our guidelines in Ask, reflect this now.
 
Over the next few weeks our site and our communication to you will reflect these and other additional changes.
 
We feel this will not affect you much in terms of what really matters in investing: knowing what to buy and when to buy. This is our edge and it will still be available to you.
 
img
Debashis Basu
Founder