Tax Notices For Below Rs.100 Cannot Be Responded

Income Tax Department, in a note says taxpayers need not respond to tax notices of small amounts like Rs.1, Rs.4, Rs.8, and any amount less than Rs.100. The tax arrears or the tax amount that is less than Rs.100 would be adjusted against future refunds. It means that, the tax demand for less than Rs.100 cannot be ignored but the taxpayer is liable to pay out of future refunds.

This notice from Tax Department has been issued in view of the unnecessary hardship to taxpayers. Recently, the central repository or Central Processing Center (CPC), located in Bangalore has sent some notices for payment of taxes of even small amounts say Rs,1, Rs,6 Rs,9 causing difficulty to the taxpayers. So, this measure was aimed to provide greater transparency and flexibility to pay the tax arrears.

IT department has also suggested CPC that the taxpayers should also be informed of the same so as to enable them to take necessary action if any of their outstanding demands were incorrect. So, a notice has been sent to the taxpayers about the existing tax arrears.

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