Budget 2024: The time limit for which income tax reassessment can be done is reduced It is also proposed to withhold refund up to sixty days of assessment under section 245 and to rationalise time limit to file appeal to ITAT under section 253," said Finance Minister Nirmala Sitharaman in the Budget speech 2024
Union Budger 2024 proposed to reduce the time-limit for which reassessment can be done and rationalisation of the provisions.#sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;}
#Budget' 2024 with ET
Budget Highlights: Your 2-minute guide
New slabs announced in new income tax regime
Stock market mood check on Budget Day
"Time limit for reassessment is proposed to be reduced from ten years to five years. Further, there are proposals to rationalise the procedure for reassessment. Further, it is proposed to omit reference to Principal Chief Commissioner or Chief Commissioner in section 275 to provide clarity of time limitation for imposition of penalties. It is also proposed to withhold refund up to sixty days of assessment under section 245 and to rationalise time limit to file appeal to ITAT under section 253," said Finance Minister Nirmala Sitharaman in the Budget speech 2024.
An individual may not get the income tax refund claimed while filing income tax return (ITR) if the income tax department has sent a tax notice under Section 245 of the Income Tax Act, 1961. This tax notice is sent to inform the individuals that the income tax department will not credit the tax refund amount (either fully or partially) and that it will set it off against the pending income tax liability from past years. An example of this is of an individual with an outstanding tax demand in AY 2002-03 and income tax refund in AY 2023-24 is being set off now.
The income tax department via its official account on X (formerly known as Twitter) said, "There are a few cases in which refunds are due to the taxpayer, but previous demands are outstanding. Section 245(1) of the Income-tax Act, 1961, mandates providing an opportunity to the taxpayer to make a representation before adjusting the refund against an existing demand. Accordingly, taxpayers with existing demand(s) in the previous years are being intimated of the same."
.budget_widget{background-color:#fceae3;padding:15px;box-sizing:border-box;margin:10px 0;} .budget_widget .head_banner{text-align:center;} .budget_widget .head_banner > a{text-decoration:none;} .budget_widget .head_banner > a:hover{text-decoration:none;} .head_banner img{width:85%;height:auto;} .budget_widget .stories_wrap{margin-top:8px;} .stories_wrap .small_story{width:23%;box-sizing:border-box;margin-right:15px;vertical-align:top;display:inline-block;} .stories_wrap .small_story:last-child{margin-right:0px;} .stories_wrap .small_story img{width:100%;height:auto;border-radius:3px;} .artText a{border:none;color:#000;} .stories_wrap .small_story h4{color:#000;font-family:Montserrat;font-weight:normal;font-size:14px;line-height:20px; height: 80px; overflow: hidden; text-overflow: ellipsis; display: -webkit-box; -webkit-line-clamp: 4; -webkit-box-orient: vertical;} .budget_widget .more_wrap{text-align:right;} .budget_widget .more_wrap > a{color:#ed193b;padding-right:20px;font-size:17px;} .budget_widget .more_wrap > a:before,.budget_widget .more_wrap > a:after{content: ''; border-top: 2px solid #ed193b; display: inline-block; border-left: 2px solid #ed193b; position: relative; transform: rotate(135deg); top: -1px; left: 5px; width: 6px; height: 6px;} .budget_widget .more_wrap > a:before{left:92px;}
Just tuning in? These are the biggest announcements from Sitharaman this morning
New income tax slabs announced in new tax regime in Budget 2024
Budget for coalition parties: FM Sitharaman grants 'special' wishes of Naidu's Andhra Pradesh and Nitish's Bihar
Rs 2 lakh crore announced for job creation
More NewsIf an individual has received an income tax notice under Section 245, then intimation will be sent to their registered email ID and SMS. One must log in to their income tax e-filing account to read the tax notice.
The income tax department can send a section 245 notice if the current year's income tax refund is being set off against the past year's outstanding tax liability. If the current year's tax refund amount is more than the past year's tax liability, then the balance refund (tax refund less of tax liability) amount will be credited to the bank account of the individual. If the past income tax liability is more than the tax refund amount in the current year, then the additional tax liability will be imposed by the tax department.
This must be paid by an individual before the due date mentioned in the notice to avoid further penalties. In case the individual was not eligible for income tax refund, then a section 245 tax notice would not been sent.
What did the Union Budget 2024 say about TDS
Credit of TDC and TCS: It is proposed to allow credit of all tax deducted or collected while computing the amount of tax to be deducted on salary income under section 192.Claiming credit for TCS of minor in the hands of parent: It is proposed to empower the Board to make rules to provide credit of tax collected to person other than collectee.
#sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;}
#Budget' 2024 with ET
What's in Sitharaman's Budget for you?
Budget 2024 Income Tax Live Updates
This story originally appeared on: India Times - Author:Faqs of Insurances
