Friday, January 6, 2012

[NewsToday] No need to respond to tax notices for below Rs 100


No need to respond to tax notices for below Rs 100
The Income Tax Department has asked assessees not to respond to notices of arrears of paltry amounts like Re 1, Rs 4 and Rs 6 as demands of less than Rs 100 would be adjusted against future refunds. The Department has issued the clarification in response to reports that the Central Processing Centre (CPC), Bangalore, is sending notices for payment of tax arrears as small as Re 1, Rs 4 and Rs 6 and thus causing hardship to assessees. "As per extant procedure, demand of less than Rs 100 is not enforced but is liable for adjustment against future refunds," said the Central Board of Direct Taxes (CBDT) in a release. The communication from the CPC for partly amounts to tax payers, it said, "is not a demand notice. This measure is, in fact, an assessee-friendly exercise". The Department has also written to all chief commissioners to amend such entries, if approached by taxpayers. THe I-T Department, it said, had created a central repository at Bangalore for better demand management and asked all officers to collate demand lying at various places. "It was suggested that taxpayers should also be informed about the same so as to enable them to take necessary action if the outstanding demands were incorrect. This measure was aimed at providing greater transparency. Therefore, a communication has been sent to taxpayers informing them about existing arrears," the release said. – Source -
Beat Regards
Prakash Nair

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