Ministry of Finance

CBDT clarifies on media reports claiming special drive to reopen cases with reference to HRA claims

There is no special drive to re-open cases of mismatch, and media reports alleging that large-scale re-opening is being undertaken by the CBDT are completely misplaced

Apprehensions are about retrospective taxation in this matterand re-opening of cases on issues pertaining to HRA claims iscompletely baseless

Posted On: 08 APR 2024 8:30PM by PIB Delhi

Certain instances of mismatch of information as filed by the taxpayer and as available with the IncomeTax Department have come to the notice of the Department as part of its routine exercise of verificationof data. In such cases, the Department has alerted the taxpayers to enable them to take corrective action.However, some posts on social media, as well as articles in the media, have highlighted enquiriesinitiated by the Central Board of Direct Taxes (CBDT) in cases where employees have made incorrectclaims 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.

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

This verification was done in a small number of cases without re-opening bulk of cases, especially sinceUpdated Return for FY 2020-21 (AY 2021-22) could have been filed by the taxpayers concerned only till31.03.2024.

It is underlined that the objective of the e-verification was to alert cases of mismatches of information forFY 2020-21 only without affecting the others.-

It is reiterated that 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.

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