{"id":27911,"date":"2022-05-21T17:46:18","date_gmt":"2022-05-21T12:16:18","guid":{"rendered":"https:\/\/plyinsight.com\/?p=27911"},"modified":"2022-05-21T17:47:10","modified_gmt":"2022-05-21T12:17:10","slug":"big-unexplained-expenditure-may-lead-to-i-t-review","status":"publish","type":"post","link":"https:\/\/plyinsight.com\/hi\/big-unexplained-expenditure-may-lead-to-i-t-review\/","title":{"rendered":"Big unexplained expenditure may lead to I-T review"},"content":{"rendered":"

The new provisions, effective from April 1, have extended the scope for tax sleuths to reopen the past assessments. Earlier, the tax department could question taxpayers when they had misreported or underreported income in the form of an asset.<\/p>\n

\u201cThe scope has been extended from escape income in the form of an asset, earlier, to now in the form of expenditure and book entries. These changes may lead to more reopening of matters due to interpretation issues\u201d,<\/p>\n

\u201cReassessment proceedings and search proceedings have been brought in consonance. So now reopening can be almost automatic in search\/requisition cases, at least. The only requirement is that the assessing officer should identify asset, entry, or expenditure in which aggregate outflow of money is more than R50 lakh \u2013 spread over the 4th to 10th relevant assessment year\u201d,<\/strong><\/span><\/p>\n

The new provisions also allow the I-T department to rely on multiple sources to reopen cases, besides the data flagged by the Central Board of Direct Taxes’ (CBDT’s) risk management and objections flagged by the Comptroller and Auditor.<\/p>\n

Now, if the department gathers evidence that a taxpayer had an \u201cunexplained expenditure\u201d, it can send him\/her a notice seeking an explanation, and also may reopen the assessed return. Unexplained expenditure includes money spent on a big event, expensive assets, and so on. Even if there is any unexplained entry in the books, it could lead to a reassessment of the return.<\/span><\/strong><\/p>\n

For example, loans that were availed and repaid within a short duration. These new provisions are part of the Finance Bill 2022. Now, the department can go back to scrutinizing the finances of a company or an individual for up to 10 years if the aggregate income or expenditure that escaped assessment over multiple years is R50 lakh.<\/p>\n

\n

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The new provisions, effective from April 1, have extended the scope for tax sleuths to reopen the past assessments. Earlier, the tax department could question taxpayers when they had misreported or underreported income in the form of an asset. \u201cThe scope has been extended from escape income in the form of an asset, earlier, to […]<\/p>","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2715],"tags":[2794,2124,2795,295],"class_list":["post-27911","post","type-post","status-publish","format-standard","hentry","category-may-articles-2022","tag-asset","tag-expenditure","tag-loans","tag-tax"],"yoast_head":"\nBig unexplained expenditure may lead to I-T review - PLY INSIGHT<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/plyinsight.com\/hi\/big-unexplained-expenditure-may-lead-to-i-t-review\/\" \/>\n<meta property=\"og:locale\" content=\"hi_IN\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Big unexplained expenditure may lead to I-T review - PLY INSIGHT\" \/>\n<meta property=\"og:description\" content=\"The new provisions, effective from April 1, have extended the scope for tax sleuths to reopen the past assessments. 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