The Central Board of Direct Taxes (CBDT) has issued a clarification in response to recent media reports hinting at a special initiative to reopen cases associated with House Rent Allowance (HRA) claims.
The CBDT affirms that there is no such specialised effort to reopen cases involving mismatches, and assertions of widespread reopening are entirely baseless.
Concerns regarding retrospective taxation and the reopening of cases related to HRA claims are dismissed by the CBDT as lacking substance.
While the department has noticed some instances of data mismatch between taxpayer submissions and information available with the Income Tax Department during routine verification procedures, affected taxpayers have been notified to address any identified discrepancies.
Despite social media posts and media articles drawing attention to inquiries launched by the CBDT into incorrect HRA claims, the CBDT clarifies that fears regarding retrospective taxation and the reopening of cases on HRA-related matters hold no validity.
Data analysis was conducted on a limited scale in high-value cases concerning discrepancies in rental payments for the fiscal year 2020-21. This verification process was carried out selectively, with no significant expansion of cases reopened, particularly considering taxpayers’ deadline of March 31, 2024, to file updated returns for the fiscal year 2020-21 (Assessment Year 2021-22).
It is stressed that the objective of the e-verification process was to identify cases of information mismatches specifically for the fiscal year 2020-21, without impacting others.
The CBDT reaffirms that there is no ongoing specialised effort to reopen such cases, and media reports suggesting otherwise are inaccurate.
