Indore (Madhya Pradesh): Traders and businessmen who were breathing easy under the faceless assessment system are once again faced with the prospect of their premises being surveyed by the income tax officer (ITO). The power of launching a survey that had been taken back from the ITOs under the faceless assessment system was restored in the Union budget and will become effective from April 1 with the start of the new financial year.
The provision of restoring the power of conducting surveys by ITOs was made in the Union Budget 2022-23. In all, 84 amendments were made to the Income Tax Laws, all of which are becoming applicable from April 1, 2022.
Talking to this correspondent, chartered accountant Manish Dafaria, an expert in income tax laws, said that undoubtedly the most significant amendment is the one restoring the right of the ITO to conduct a survey. All the ITO has to do is get permission from the chief commissioner before launching the survey. This will only increase the number of surveys.
Under the faceless assessment system, if the ITO found any discrepancies, he could give a show-cause notice in advance through e-mail and the tax consultant had the right to file a reply through e-mail on behalf of his client and if need be there could be a video-conference with the ITO.
Possibility of reassessment revived
Important amendments have also been made in the section of tax reassessment, in which the powers of the department have been increased, due to which there is every possibility of increasing the cases of reassessment.
CA Dafaria | FP Photo
Loan taker and giver, both have to disclose source
CA Dafaria said that a new amendment has been brought in section 68 of the Income Tax Act. In case of a loan, now the source person from whom the loan has been taken will have to be provided. Otherwise, that loan amount will be taxed under section 68 and section 115 in BBE. 78% of the amount will be taxed.
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