For all those income tax assessees who have filed their income tax returns for Assessment Year 2007-2008 (FY 2006-2007) last year, there are reasons to cheer if you haven’t got a income tax scrutiny notice till now.
Till last year, the law was that income tax department could issue a notice u/s 142(1) and 143(2) till 12 months from the end of the month in which the return was filed. That meant for individuals who got their accounts audited, last date was October 31 of the year and for others it was July 31.
But since April 2008, the clause has been changed and the time period for issue of notice for scrutiny of assessment has been modified. As per new law, such notice shall not be served after the expiry of six months from the end of the financial year in which the return is filed. Thus last date to receive a notice is now 30th September of each year.
The new clause won’t make a difference for those who get their accounts audited, as w.e.f. Assessment Year 2008-2009, last date of filing has been reduced from October 31 to September 30. While for other individuals, it gives 2 months more for income tax department to issue such notices.
So in case if you receive a income tax scrutiny notice after 30-September, it would be considered invalid.