Nirali Nayak 13 June 2021
Hello sir, greetings of the day.
As per your query, under Section 147 of the Income Tax Act, 1961, the Income Tax Department has the power to reassess an individual’s previously filed income tax returns. The Assessing Officer can pick up any income tax return for reassessment subject to some pre-defined criteria by sending a notice under section 148 for income Escaping Assessment. As a result of Union Budget of 2021, the time limit to re-open income tax assessment cases has been reduced to 3 years from 6 years. Also, in case tax evasion is serious, the assessment can be reopened till 10 years, only when concealment of income is more than 50 lakh. Section 149 of the Income Tax Act, provides that the notice under section 148 could be issued within a period of 4 years from the end of relevant assessment year if the income escaped doesn’t exceed Rs1 lakh.
Hope this answers your question.