New Delhi: Government is planning to simplify the efforts for the income tax payers by reducing the assessment time of an individual’s tax returns by picking up random inspection to be done in one year.
As of now, the assessment of tax revenues is being done according to the computer-driven scrutiny system in which the whole task can be accomplished in two years after the assessment year closes. Ergo, if the inspection of returns is for the fiscal year 2015-16, its assessment year will be marked as 2016-17. The scrutiny can, therefore, be completed by 2019.
During stage one, the proposed shortening of the period was up to 21 months. This means, the last years’ assessment may have the time limit up to December 2017 to complete the inspection.
“We plan to reduce it by three months every year so that assessment is completed in 12 months,” said a senior revenue department official.
By toning up the assessment process, the government is trying to depict an amicable administrative picture, conveyed by the sources. The tax department has already been informed to hold back the tedious assessment and they are informed to avoid the fishing expedition during inspection of one percent of the tax returns as well.
Completing the assessment on time would be the target in the second stage as the revenue department has observed the frequent completion of the exercise towards the termination of the stipulated period. “As the deadline approaches, there is typically a bunching during the last two months,” official confessed.
The scrutiny will be done only after the closure of the financial year and it is when the assessment order is received, which could be three years from the end of the fiscal year, that a tax payer would be able to get whether there are further claims or not. “It is too long a process and often you forget the details and enhances the burden on taxpayers. That is why we are trying to shorten the process,” he added.
