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'Fear of retrospective taxation baseless': CBDT says no special drive to re-open HRA mismatch cases

'Fear of retrospective taxation baseless': CBDT says no special drive to re-open HRA mismatch cases

The board said certain instances of mismatch of information as filed by the taxpayer and as available with the Income Tax Department had come to the notice as part of its routine exercise of verification of data. 

CBDT clarification on cases with reference to HRA CBDT clarification on cases with reference to HRA

The Central Board of Direct Taxes (CBDT) on Monday issued a clarification on cases related to incorrect claims of HRA (House Rent Allowance). The board said certain instances of mismatch of information as filed by the taxpayer and as available with the Income Tax Department had come to the notice as part of its routine exercise of verification of data. 

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In such cases, the I-T Department has alerted the taxpayers to enable them to take corrective action, it said. However, some posts on social media, as well as articles in the media, have highlighted enquiries initiated by the CBDT in cases where employees have made incorrect claims of HRA and rent paid. 

"At the outset, it is stated that any apprehensions about retrospective taxation on these matters and re-opening of cases on issues pertaining to HRA claims is completely baseless," the department said.  

Data analysis was carried out in some high-value cases of mismatch between the rent paid by the employee and receipt of rent by the recipient for the FY 2020-21, the department added. 

"This verification was done in a small number of cases without re-opening bulk of cases, especially since Updated Return for FY 2020-21(AY 2021-22) could have been filed by the taxpayers concerned only till 31.03.2024."

The department said the objective of the e-verification was to alert cases of mismatches of information for FY 2020-21 only without affecting the others. "There is no special drive to re-open such cases, and media reports alleging that large-scale re-opening is being undertaken by the Department are completely misplaced," it said.

Published on: Apr 08, 2024, 8:32 PM IST
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