Give robust response to Sec 148A notice to avoid reassessment

The Income-Tax (I-T) Department is reviewing cases from assessment year (AY) 201819 for potential reopening, which may lead to a surge in tax notices.

- BINDISHA SARANG

This action follows the Union Budget's decision to reduce the tax reassessment window to five years. From September 1, assessments for AY 2018-19 will be time barred.

Changed timelines

The Finance Bill 2024 proposes amendments establishing new time limits for issuing tax notices. "For income escaping ALTERED CRITERIA Quantum of Income assessment of 50 lakh or more, the Section 148A notice must be issued within five years and three months from the end of the assessment year. Notices under Section 148, following a Section 148A notice, have a maximum time limit of five years from the assessment year-end. These changes will take effect from September 1, 2024," says Mumbai-based chartered accountant Suresh Surana.