The CBDT which stands for The Central Board of Direct Taxes provided a big relief to all the taxpayers. CBDT through an order directed all the authorities to not send any adverse message and letters to any tax assessee for mistakes during the first quarter of Financial Year 2020-21. CBDT with this step reflecting that the board will focus on internal clearing and preparation for the post-COVID-19 situation. This step seems like a part of the interim action plan for the financial year 2020-21 and authorities also expect that it will help to monitor the working performance of officers placed all across the country.
Read Also: Major Changes in Income Tax Rules FY 2020-21 (AY 2021-22) A simple way to understand all major changes under rebates and deductions in income tax rules for the FY 2020-21 (AY 2021-22). Also, we included penalty charges if ITR filing missed
The board stated through an internal order dated 8th May that, “A relatively short-term internal action plan has been issued for the first quarter of Financial Year 2020-21 due to the unprecedented situation caused by Covid-19 pandemic. “The same order clearly states that “…no adverse message is to be sent to an assessee for any mistakes done during this period till the new guidelines are issued by the Board in this matter.”.
This is a completely different step CBDT performs usually every year. The board at this time (beginning of the FY) usually sets a target and decides the due dates for its field office. The board also set a collection target of direct tax These types of taxes are directly imposed and paid to the government of India. Example of Direct Tax is Income Tax, TDS, Securities Transaction Tax, Fringe Benefit Tax, etc of ₹13.19 Lakh Crore for the Financial Year 2020-21, which is 28% higher than the actual direct tax collection of the previous financial year. However, it is expected that the board will reduce the income due to the back to back lockdowns.
Reports indicate that, for the KRA of April and June of FY 2020-21, The CBDT (Central Board of Direct Taxes) included a process to find-out cases where the determination of Income is missing, along with cases where amendments required to income determinations as well as the settlement of dispute settlement applications, etc. The board also asked Principal Chief Commissioners and other Commissioners to resolve at least 25% of the tax dispute settlementKnow about the tax dispute settlement scheme under the IT act. Under this scheme, taxpayers can settle all disputes before the end of 31st March 2020. Read More applications pending on April 1st, 2020, and also directed them to complete the investigations and reviews for the FY 2019-20 during the quarter which is ending in June 2020.
Sandeep Jhunjhunwala, director of Nangia Anderson LLP applauded the steps taken by the board by stating, The steps that are taken by the board will help promotes the normal and fast working post-lockdown. He further added that the board is aware and has understood the issues and problems of taxpayers. He also stated that the interim plan seems to be completely focused on inhouse clearing before resuming the complete working system and other subsequent preparations.