The CBDT issued an Office Memorandum (OM) on February 27, 2025, clarifying the implementation of the Risk Management Strategy (RMS) under the Income-tax Act, 1961, following amendments introduced by the Finance (No. 2) Act, 2024.
Memorandum Highlights
Understanding RMS Upload Exemptions for Select Cases
- As per the memorandum, the details emerging from the investigation of cases do not need uploading on the CRIU/VRU functionalities, as these cases are waived from the Risk Management Strategy (RMS) under the Income-tax Act.
- This information must be directly forwarded to the Jurisdictional Assessing Officer (JAO) for required action u/s 147 of the Act.
Applicability of Unamended Sections 147-151
- Cases where a search, survey, or requisition of assets happened between April 1, 2021, and September 1, 2024, will continue to be controlled by the pre-amended provisions of Sections 147 to 151 of the Act.
- The Assessing Officer (AO) in these cases is considered to have enough information to suggest income escapement, removing the need for RMS execution.
Obligatory Submission to JAO
- Any earlier uploaded data related to these matters should be transferred directly to the JAO by March 10, 2025, to permit enough time for subsequent action.
- Supervisory authorities have been directed to track compliance within the specified timeframe.
RMS Upload Requirements for All Other Cases
For the cases not coming within the investigation, the officer should carry on uploading the data on CRIU/VRU functionality as soon as possible to ensure the timely execution of RMS.
Analysis of the Update’s Implications
The same clarification is anticipated to ease the income tax assessments and risk management process, ensuring that the investigations are managed precisely via the respective jurisdictional officers. The same procedure supports the devotion of the CBDT to rectify compliance and lessen procedural bottlenecks in tax administration.
For tax professionals and businesses, complying with such directives will be significant in ensuring easier processing of assessments and preventing unwanted procedural delays.
