The government is planning to cut the time under which an assessment of an individual’s tax returns picked up for random scrutiny is completed to one year.
At present, assessment of tax returns picked up by a system of computer driven scrutiny can be completed in two years after the close of the assessment year. That means scrutiny of returns for the financial year 2014-15, which is assessment year 2015-16 that ended on March 31, can be completed till March 2018.
The government, in the first stage, proposed to reduce this period to 21 months that means assessment for the last financial year can be completed until December 2017.
A senior revenue department officer said that “We plan to reduce it by three months every year so that assessment is completed in 12 months.”
Read EquityPandit’s Technical Analysis of Indian Stock Market