The Income Tax Department today said that tax returns filed by senior citizens above 60 years and small taxpayers with gross total income of less than Rs 10 lakh will not be scrutinised in a routine manner.

“It has been decided that during the financial year 2011-12, cases of senior citizens and small taxpayers, filing income-tax returns in ITR-1 and ITR-2 will be subjected to scrutiny only where the Income Tax department is in possession of credible information,”Central Board of Direct Taxes said in a statement.

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Appreciating the concerns of these taxpayers and with a view to mitigate their hardships, it said, Central Board of Direct Taxes has reviewed its scrutiny selection procedure.

Senior citizens for this purpose would be individual taxpayers who are 60 years of age or more.Small taxpayers would be individual and HUF taxpayers whose gross total income, before availing deductions does not exceed Rs 10 lakh, it said.

Scrutiny of income tax returns is an important mechanism for ensuring taxpayer compliance and to counter tax-evasion, it said.

The press release in respect of above issued by CBDT is given  herebelow for ready reference of our readers:
Please Note :-
  1. Exemption is not available to those who are having business Income or are Having Income from partnership Business.
  2. Income of senior citizen may exceed 10 Lakh.
____________________________________
No.402/92/2006-MC (07 of 2011)
Government of India / Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi dated the 14th March 2011
PRESS RELEASE
Streamlining procedure for scrutiny of income-tax returns

Scrutiny of income tax returns is an important mechanism for ensuring taxpayer compliance and to counter tax-evasion. However, it has evoked some concern from small taxpayers and senior citizens about prolonged enquiries. Concerns have also been raised about selection of the same cases in scrutiny year after year.
Appreciating the concern of these taxpayers and with a view to mitigate their hardships, Central Board of Direct Taxes has reviewed its scrutiny selection procedure. In order to redress the grievance, it has been decided that during the financial year 2011-12, cases of senior citizens and small taxpayers, filing income-tax returns in ITR-1 and ITR-2 will be subjected to scrutiny only where the Income Tax department is in possession of credible information.
Senior citizens for this purpose would be individual taxpayers who are 60 years of age or more. Small taxpayers would be individual and HUF taxpayers whose gross total income, before availing deductions under Chapter VIA, does not exceed Rupees ten lakh.
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7 responses to “No Income Tax Scrutiny of Senior Citizens and Small Tax payers Having Gross Income less then 10 Lakh”

  1. Sukhwant Singh says:

    Does this exemption from scrutiny continue even now?

  2. Ashokbangia says:

    Was this only for FY 2011-12 or for all future years ??

  3. DR TALWALKAR says:

    time barring fr yr ending on 31.3.11.E Return filed in April 2011.

  4. DR TALWALKAR says:

    I want to know when I T Return filed in April 2011 for I.T. ASSESMENT YR Ending 31.3.12 will be time barred?

  5. mahadevan says:

    Very senior citizens, I am one, am happy at the relief by way of exemption limit ( Income limit of Rs. Five Lakhs) as also from scrutiny in specified situation .    
    A realistic measure.
       

  6. CA. M, Lakshmanan says:

    A great relief to the “NEW SENIOR CITIZENS” who are attaining 60 during the year ended 31.03.2012. This is the first year they are getting the status of senior citizens and they are exempted from scrutiny also. Automatically it should cover very senior citizens, who are 80 years and above.

  7. CA Ashok Aggarwal says:

    A step in right direction.

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