CBDT reduces Time Limit to re-open Income Tax Assessments
December, 07th 2021
The Central Board of Direct Taxes (CBDT) has reduced the Time limit to re-open Income Tax assessment from 6 years to 3 years.
The assessment can be reopened upto 10 yrs, only when there is evidence of concealment of income of more than Rs. 50 lakh in a year with approval of e Principal Chief Commissioner of Income Tax.
The Finance Act, 2021 has reduced the time limit for reopening of assessment to 3 years from the earlier 6 years. Beyond the period of three years, cases can be re-opened up to 10 years with the approval of the Principal Chief Commissioner of Income Tax only where there is evidence of concealment of income of Rs 50 lakh or more in a year.