Return Filing and Assessments:

Return Filing and Assessments:

  1. Senior citizen having an age of more than 75 years with an income of interest and pension exempted from filing of return: FM
  2. Reduction in the time limit for filing of belated or revised return by 3 Months
If due date is 31.07.2021, Belated or revised return can be filed on or before 31.12.2021.
If due date is 31.10.2021, Belated or revised return can be filed on or before 31.01.2022.
More Clarification Awaited.
  1. Reduction in the time limit for processing of ITR and issuance of notice by 3 month each.
  1. The time-limit for processing of Income-tax returns and sending of an intimation has been proposed to be reduced from 1 year to 9 months from the end of the financial year in which the return is filed.
  2. The time-limit to serve a notice for scrutiny assessment is proposed to be reduced from 6 months to 3 months from the end of the financial year in which the return of income is furnished.
  1. For FY 20-21, i.e. AY 21-22, intimation u/s 143(1) will be issued by 31.12.2022 and scrutiny notice can be issued until 30.06.2022.

Adjustments to be made by CPC while processing ITR if the difference with respect to Audit Report:
The CPC while processing the return of Income under section 143(1) can make an adjustment for any increase in income due to a mismatch in the income disclosed in the tax audit report and income computed in the Income-tax return.

Reduction in the time limit for reopening of cases i.e. income Escape Assessment:
No notice shall be issued if three years have elapsed from the end of the relevant assessment year.
If the income escaping assessment exceeds or is likely to exceed Rs. 50 lakhs, the notice can be issued within 10 years from the end of the relevant assessment year.

Reduction of time limit for completion of the assessment proceedings
The time limit for completion of Normal scrutiny assessment (Sec 143) and Best Judgment Assessment (Sec 144) is proposed to be further reduced by 3 months. Now, the time for completion of assessment shall be 9 months from the end of the assessment year in which the income was first assessable.

Faceless scheme for ITAT appeal
The Central Government has been empowered to notify a faceless scheme for disposal of appeal by the ITAT. This shall eliminate the interface between the ITAT and parties to the appeal to the extent technologically feasible. All communication between the Tribunal and the Appellant shall be electronic. Where a personal hearing is needed, it shall be done through video-conferencing.

Constitution of DRC for small and medium taxpayers
A new scheme is proposed for setting up of Dispute Resolution Committee (DRC). Taxpayers having a taxable income of up to Rs. 50 lakh and disputed income of up to Rs. 10 lakh shall be eligible to approach the Committee. The assessee would have an option to opt or not to opt for the dispute resolution through the DRC.