CBDT Directs Officers To Adopt Uniform Procedures For Non-Filers of I-T Returns

NEW DELHI: With an aim to check tax evasion, the Central Board of Direct Taxes (CBDT) has tightened norms to deal with 'no-filers' of income tax returns and asked its officers to follow uniform procedure in handling such cases.

"The existing procedure for monitoring cases of 'non- filers of I-T Returns'...has been examined by the Board. It is felt that at present, cases of non-filers are not being uniformly monitored by the Assessing Officers due to lack of consistency in approach in dealing with such cases," the CBDT said in a communication to its top officers.

Therefore, in order to streamline the processing of such cases and to ensure consistency in monitoring 'Non-Filers Monitoring System' (NMS) cases by the Assessing Officers, the CBDT has issued "standard operating procedure".

As per the guidelines, the Assessing Officer has to issue letter to the assessee within 15 days of the case being assigned in NMS, seeking information about the return of income flagged in the system.

In cases where the assessee has been identified and no return has been filed within 30 days of the time given in the letter, the Assessing Officer should consider initiation of proceedings as prescribed.

The CBDT (Income Tax Department) has identified about 12 lakh non-filers and has been sending letters to them to file returns and pay taxes. As per the latest data, the tax department has issued letters in 2.45 lakh cases.

Following issuance of letters to non-filers, CBDT earlier said, about 3.44 lakh returns have been received from the target segment. Such persons, it said, have also paid self assessment tax amounting to Rs 577 crore and advance tax of Rs 408 crore.

The department has also made it clear that it will to go after recalcitrant taxpayers and the exercise will continue till all potential non-filers are covered.

 

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CBDT Creates Detailed Procedure To Track Non-Filers Of Income-tax Returns

The CBDT has issued Instruction No. 14/2013 dated 23.09.2013 by which it has created a “Standard Operating Procedure for cases under Non-filers Monitoring System”. The Instruction points out that the existing procedure for monitoring cases of ‘Non-Filers of IT Returns’ as identified by Director General of Incom Tax (System) results in Non-Filers not being uniformly monitored by the Assessing Officers due to lack of consistency in approach in dealing with such cases. In order to streamline the processing Of such cases and to ensure consistency in monitoring NMS cases by the Assessing Officers, the Board has laid down a detailed Standard Operating Procedure.

To

All Chief-Commissioners of Income-tax

All Directors-General of Income-tax

Sir/Madam

Subject: Standard Operating Procedure for cases under Non-filers Monitoring System

('NMS') -regarding-

The existing procedure for monitoring cases of 'Non-Filers of IT Returns' as identified by Director

General of Income Tax (System) has been examined by the Board. It is felt that at present, cases of

Non-Filers are not being uniformly monitored by the Assessing Officers due to lack of consistency in

approach in dealing with such cases, Therefore, in order to streamline processing Of such cases and to ensure consistency in monitoring NMS cases by the Assessing Officers, the Board, hereby lays down the following Standard Operating Procedure:

1. The Assessing Officer should issue letter to the assessee within 15 days of the case being

NMS, seeking information about the return of income flagged in: NMS. Facility to

generate letter has been provided in the NMS module of i-taxnet.

2. IF the letter is delivered, the Assessing Officer should capture the delivery date in the NMS

module.

3. If the letter is not delivered, the Assessing Officer should issue letter to the alternate

addresses f the assesse available in the Online Monitoring System or any other address

available with the Assessing Officer through field enquiries or otherwise. All addresses used

in IT Return, AIR, CIB databases have been made available to the Assessing Officer in the

Online MO toring System to assist the field formations in identification of current address of

the taxpayer.

4. If the return is received, the assessing officer should capture the details in AST within 15 days

of filing of i he return. If the assessee informs that paper return has already been filed which

was not captured in AST, the details of return should be entered in the AST within 15 days of

receiving s i ch information. E - filed returns will be automatically pushed to NMS.

5. , If no retururn is  required to be filed in the case (non resident etc.), the Assessing Officer should

mark "No return is required" and mention reason for the same in NMS which needs to be

confirmed by Range head.

6. If the Assessing Officer is not able to serve the letter and identify the taxpayer, assessing

officer should mark the assessee "Assessee not traceable" in NMS which needs to be

confirmed y Range head.

7. In cases where the assesse has been identified and no return has been filed within 30 days of

the time given in the letter, the Assessing Officer should consider initiation of proceedings u/s

142(1)14 13 in AST.

8. The cases will be processed every week by the Directorate of Systems and will be marked as

closed in NMS if one of the following actions are taken for A.Yr.'s 2010-11, 2011-12 and

2012-13:

a) Details of return are available in AST

b) Notice u/s 142(1) or 148 has been issued in MT

c) "No return is required" is marked by the Assessing Officer and confirmed by

Range head.

I am further direted to state that the above be brought to notice of all officers working under your

jurisdiction for necessary and strict compliance.

To Download the Official Notification click here.

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