The Central Board of Direct Taxes (CBDT) issued on Wednesday extensive guidelines for implementing a Supreme Court (SC) order in reassessment cases. The court had early this month ruled that the thousands of show cause notices the Income Tax department had issued under a previous regime should be treated as ones issued under a new one for reopening assessment cases. The CBDT said that for three years, viz. assessment years (AY) 2013-14, 2014-15 and 2015-16, reassessment notices will not be issued for small taxpayers whose asset is less than Rs 50 lakh. The CBDT also clarified about subsequent years--AY 2016-17 and AY 2017-18--where timeline to issue notices under Section 148, as extended by various Taxation & Other Laws Amendment Acts ('TOLA') till June 30, falls within period of three years. Tax officers, in such cases, will issue show cause notices and provide material/ information to taxpayers for initiating reassessment proceedings, within 30 days--June 2.
