The Income Tax Department intends to pursue legal action against over 1.5 crore individuals

The Income Tax Department intends to pursue legal action against over 1.5 crore individuals

Income Tax Department Action: Identifying the specific defect and the individuals it would be tightening the noose around, the Income Tax Department of the nation is clamping down on taxpayers and entities that file income tax returns irregularly.

Income Tax Department Action: You may find this news helpful if you submit an income tax return. Currently, the Indian Income Tax Department is implementing severe measures. He is tightening the screws on people who file income tax returns with errors, who fail to pay taxes even after reaching the threshold, or who pay less in taxes. A report about this has surfaced.

1.52 crore individuals who have income or who have paid Tax Deducted at Source (TDS) but have not submitted their forms have been discovered by the nation's Income Tax Department. There's news! The Income Tax Department is going to launch a campaign against those people and organizations that need to submit their income tax returns (ITRs) but haven't yet.

The Income Tax Department found 1.52 crore people.

Economic Times, a journal and website covering business matters, said that the Income Tax Department has identified 1.52 crore individuals who either have income or have not submitted their returns even if they have deposited TDS. The Central Board of Direct Taxes has requested that these defaulters be contacted by field formation by April 15th, according the aforementioned report.

More taxpayers, less returns!

About 8.9 crore income tax payers and 7.4 crore submitted returns for the fiscal year 2022–2023 (according to an official). The official said that updated returns are included in the total number of returns. This means that, even after TDS deduction, there may have been 1.97 crore individuals who failed to submit an ITR. 1.93 crore of the people who failed to submit their taxes were individuals, 28,000 were members of Hindu Undivided Families (HUF), and 1.21 lakh were businesses. The remainder, apart from this, belonged to other categories.

Guidelines provided to field officers

According to the study, there were several cases where there were a lot of bank transactions linked to PANs, necessitating the filing of an ITR. The Income Tax Department has instructed field officers to get in touch with these individuals, provide accurate data and information, and clarify to them the need of filing an ITR. Approximately 8,000–9,000 prospective taxpayers are receiving tax notifications, according to statistics from CBDT. The government has records of large ticket sales and substantial cash deposits made against these individuals.

Willful defaulters will pay a penalty.

Those who are discovered to be deliberate defaulters will be penalized, but taxpayers who can legitimately explain their unexpected income may also need to submit a return or offer an explanation. The CBDT said last month that greater advance tax collection was the reason for a 19.88% rise in net direct tax collection through March 17 to over Rs 18.90 lakh crore.