Tax scrutiny waived or No routine tax scrutiny for Senior citizens, Small taxpayers

Posted: 16/03/2011 in Income Tax

The Income Tax Department has said that tax returns filed by senior citizens above 60 years and small taxpayers with gross total income of less than Rs 10 lakh will not scrutinised in routine manner.

Central Board of Direct Taxes has reviewed its scrutiny selection procedure. In order to redress the grievance of the taxpayers, it has been decided that during the financial year 2011-12, cases of senior citizens and small taxpayers, filing income-tax returns in ITR-1 and ITR-2 will be subjected to scrutiny only where the Income Tax department is in possession of credible information.

Scrutiny of income tax returns is an important mechanism for ensuring taxpayer compliance and to counter tax-evasion.  However, it has evoked some concern from small taxpayers and senior citizens about prolonged enquiries. Concerns have also been raised about selection of the same cases in scrutiny year after year. Appreciating the concern of these taxpayers and with a view to mitigate their hardships, Central Board of Direct Taxes has reviewed its scrutiny selection procedure. In order to redress the grievance, it has been decided that during the financial year 2011-12, cases of senior citizens and small taxpayers, filing income-tax returns in ITR-1 and ITR-2 will be subjected to scrutiny only where the Income Tax department is in possession of credible information.

Senior citizens for this purpose would be individual taxpayers who are 60 years of age or more.  Small taxpayers would be  individual and HUF taxpayers whose gross total income, before availing deductions under Chapter VIA, does not exceed Rupees  Ten lakhs.

Click here to download “CBDT Press Release on streamlining of scrutiny procedure for 2011-12 No.402/92/2006-MC (07 of 2011) dated 14.03.2011”.

Source: Income Tax Department of India

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