Expedite scrutiny cases below Rs 5 lakh: CBDT to taxman

New Delhi: In fresh moves to end taxpayers grievances, CBDT has asked the taxman to "expeditiously" complete those scrutiny cases where income concealed is uptoRs 5 lakh .

It has asked the Assessing Officers (AOs) to confine their queries for which the case has been picked up for scrutiny under the 'Limited' category, which pertains to cases with income upto Rs 5 lakh and in the four metro cities, besides Bangalore, Hyderabad and Ahmedabad the limit is Rs 10 lakh. "Limited Scrutiny cases shall remain confined only to the specific reasons/issues for which case has been picked up for scrutiny. The scope of enquiry shall be restricted to the Limited Scrutiny issues.

These cases shall be completed expeditiously in a limited number of hearings," the latest CBDT directive issued in this regard yesterday, also accessed by PTI, said. The IT department brings about 1-2 per cent of cases under the stringent scrutiny assessment procedures where, on the basis of credible information, it has suspicion that the taxpayer has under-reported or hidden his true income.

The scrutiny procedure, while used only for a select number of cases, has been a constant issue of grievance for taxpayers as they complain that the taxman harasses them with long queries and number of time-taking appearances.

There are two kinds of scrutiny in the tax department, 'Limited' and 'Complete', and the new directives have asked that the AO "has to intimate the reason for selection of case for scrutiny to the assess concerned" in all cases. The new instructions, officials said, have been issued to further redress and mitigate taxpayers grievances.