The department is utilizing the extensive data it receives to identify inconsistencies and is urging taxpayers to update their returns if any details have been overlooked. With 5.1 million updated returns, the department has collected Rs 4,600 crore thus far.
Gupta emphasized that the focus is on enhancing taxpayer services, including expediting refund timelines and resolving significant tax disputes. To facilitate this, the CBDT has established a demand management center in Mysuru, Karnataka, which concentrates on resolving tax disputes above Rs 1 crore. By bringing together chartered accountants, assessing officials, and taxpayers, the center aims to reach agreement on assessments.
Also Read | Budget 2024 income tax: Some relief for taxpayers; outstanding personal tax demands up to Rs 25,000 withdrawn; details here
Originally limited to Karnataka, the centre has expanded its scope to encompass cases from all over India. In the two years since its inception, the centre has successfully resolved 250,000 such matters. Additionally, the CBDT will release a comprehensive circular to implement the Union Budget 2024 announcement regarding the withdrawal of outstanding small tax demands up to Rs 25,000 until FY15.
Gupta confirmed that the cumulative threshold will be maintained at RS 1 lakh crore, which includes penalty and interest. Taxpayers will be notified and won’t be required to take any action. As of now, 60% of taxpayers have transitioned to the new tax regime introduced in the February 2022 budget, he said. The department intends to assess the response and filing patterns before considering any rate adjustments, he added.
Read From ET |Some taxpayers to get notices
Gupta mentioned that the additional disclosures requested in income tax returns are largely based on recommendations from the Public Accounts Committee and the Election Commission of India.
Starting this year, high-income taxpayers are required to provide more details, such as the Legal Entity Identifier (LEI), contributions to political parties (including date and mode of payment), and deductions claimed for the maintenance and medical treatment of dependents with disabilities, among other things.