look news india
The Central Board of Direct Taxes (CBDT) has expressed the opinion that the new rules of search and seizure implemented by the IT department in Budget 2024-25 will reduce legal disputes and increase compliance with the ability to resolve cases within a single tenure.
According to him, if the taxpayer accepts the properties found at the end of the search and agrees to pay 60 percent tax on undeclared income, the matter will be resolved automatically. The implementation of this rule will start from September 1, 2024.
Aggarwal further said that this process takes a lot of time after searching any place. But according to the new proposed system, if the taxpayer is willing to pay 60 percent tax on undeclared income, then the case will be settled in a period and the taxpayer will not be penalized in any other way. According to experts, the purpose of implementing the new system is to promote the disclosure of undeclared income and the legal disputes arising from this rule will be reduced by about 20 percent. The new system, known as block assessment, will be applicable to undeclared income found in search campaigns conducted in the last six years.
According to the current provision, apart from interest on income tax, penalty also has to be paid
Currently, if the Income Tax Department does not find a legal account of the properties found during a search operation, then income tax of 60 percent is imposed on it, not as declared income, but apart from this, there is also a provision to pay interest and penalty on this income tax. Apart from this, even if the taxpayer accepts to pay income tax in this way, there is no such provision that this matter can be settled in a single period.