Govt: ITRs Likely to be Reopened Up to 16 Years

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The Government of India may amend the Income Tax Act, 1961, which currently permits re-assessment of income tax returns (ITRs) up to six years. The amendment will allow reopening tax returns of previous 16 years to investigate income which is undisclosed. This amendment would also assist in procuring information according to the revised double taxation avoidance agreement (DTAA) with Switzerland. This treaty will be effective in Switzerland from January 1, 2012 and in India from April 1, 2012.
A senior Income Tax official noted that the existing law did not encapsulate provisions for obtaining details from the concerned Swiss authorities about former transactions of active Swiss Bank accounts. “But if we get some old information domestically by reassessing the older returns, we can place a special request with the Swiss Government. We hope they will oblige,” he said.
Recommendation to provide for reopening of ITRs older than six years was also made by another committee led by the Chairman, Central Board of Direct Taxes, to check the trail of black money.