No special drive to reopen cases to examine HRA claims – CBDT clarification on media reports claiming Income Tax Department special drive to reopen cases with reference to HRA claims
CBDT has clarified that apprehensions about retrospective taxation on incorrect HRA claims and re-opening of cases on issues pertaining to HRA claims is completely baseless.
According to the Press release issued by CBDT, there is Certain instances of mismatch of information as filed by the taxpayer and as available with the Income Tax Department have come to the notice of the Department as part of its routine exercise of verification of data. In such cases, the Department has alerted the taxpayers to enable them to take corrective action.
CBDT has observed that there are some posts on social media / news media, have highlighted enquiries initiated by the CBDT in cases where employees have made incorrect claims of HRA and rent paid.
However, CBDT has denied the apprehensions about retrospective taxation on these matters and re-opening of cases on issues pertaining to HRA claims is completely baseless.
CBDT has further stated that data analysis was carried out in some high-value cases of mismatch between the rent paid by the employee and receipt of rent by the recipient for the FY 2020-21. This verification was done in a small number of cases without re-opening bulk of cases, especially since Updated Return for FY 2020-21(AY 2021-22) could have been filed by the taxpayers concerned only till 31.03.2024.
It has been stated that the objective of the e-verification was to alert cases of mismatches of information for FY 2020-21 only without affecting the others.
CBDT has again reiterated that there is no special drive to re-open such cases, and media reports alleging that large-scale re-opening is being undertaken by the Department are completely misplaced.
ABCAUS Note: No surprise on CBDT clarification which has come at a time when Parliament election 2024 are on the anvil
Sundry creditors outstanding in books can’t be treated income u/s 41(1) merely because recovery was barred by limitation - ITAT…
For claiming exemption u/s 11, assessee is required to furnish return of income within time allowed u/s 139 and not…
FAQs on amendment proposed to rates of Tax Collection at Source u/s 394(1) of the Income-tax Act, 2025 Income Tax…
FAQs on amendment proposed in Updated return provisions under section 263(6) of Income Tax Act 2025 by Budget 2026-27 Income…
Income Tax Department has issued a FAQ on amendments proposed to provisions related to Tax Deduction at Source (TDS) and…
Baggage Rules 2026 to rationalise existing rules to address genuine concerns faced by passengers at airports The earlier Baggage Rules,…