February 6,2018:

CBDT Chairman Sushil Chandra said that,"A policy decision has been made not to issue tax demand notices in case of minor mismatch in these instances. We trust the taxpayer and the step is aimed to make easy the processing of income tax returns".

From now on, Taxman will not issue demand notice to taxpayers in case there is a minor mismatch between their income tax return (ITR) and the corresponding tax credit data collected by the department from banks and other financial institutions.

The measure, introduced in latest Financial Bill, is aimed to provide relief to small and salaried class of taxpayers and aims to ease out issues of small discrepancies that sometimes crop up between the information on Form-16 (provided by the employer) and Form-26AS (tax credit statement received by the tax department).

He further added that Policy measure will be enforced in respect of any return furnished for the upcoming assessment year (2018-19) commencing from April 1.

These demand notices, as per existing procedure, were issued by I-T Department's Central Processing Centre (CPC) located in Bengaluru.

 

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