133563In view of reduced inflation and expenses, will it be right to invest in IT stocks?

The Central Board of Direct Taxes (CBDT) has clarified via its platform that there is no specific initiative to reopen cases pertaining to House Rent Allowance (HRA). The Income Tax Department confirmed that there is no current special effort to scrutinize mismatched cases. Despite this clarification, concerns persist regarding retrospective taxation and HRA.

The Income Tax department has reassured taxpayers that these concerns are unwarranted. They have acknowledged instances of mismatched information and are committed to rectifying any misinformation circulating. The department has underscored the misinformation about retrospective taxation and reopening cases with discrepancies.

House Rent Allowance (HRA) is a key part of salary income, eligible for tax exemptions. Employees in rented accommodations can claim these exemption by providing valid rent receipts.

“Data analysis was carried out in some high-value cases of mismatch between the rent paid by the employee 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 since Updated Return for FY 2020-21(AY 2021-22) could have been filed by the taxpayers concerned only till 31.03.2024. It is underlined that the objective of the e-verification was to alert cases of mismatches of information for FY 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.”- Income tax Department.

Check out the Tweet by Income tax department- https://x.com/IncomeTaxIndia/status/1777360871985217923