You are here: Home » Economy & Policy » News
Business Standard

CBDT clamps down on coercive assessment, tax recovery measures by officers

Says recovery surveys be resorted to only if assessee is not responding to notices, can only be undertaken by those in investigation or TDS wing of tax dept

Topics
CBDT | Income Tax department | TDS

Indivjal Dhasmana  |  New Delhi 

Cash, tax, p notes
The board reminded the officers that the survey can only be undertaken by those in the investigation or TDS wing of the income tax department.

The Central Board of Direct Taxes (CBDT) has restricted the coercive and intrusive powers of assessing and tax recovery officers with immediate effect.

In its circular, the board asked the officers to take coercive and intrusive measures only after exhaustion of other means of recovery.

It said recovery surveys be resorted to only in cases where tax assessees are not responding to notices or notices are not being served.

ALSO READ: GST shortfall: FM writes to states, explains Rs 1.1 trn borrowing window

The board reminded the officers that the survey can only be undertaken by those in the investigation or wing of the

It said the recovery be approved by higher officers, depending on the nature of the taxes.

It also directed officers to take prior approval of senior officers such as principal commissioners, commissioners for attachment of movable or immovable property.

Sandeep Sehgal, director at AKM Global, a consulting firm, said,"It is often seen that in the zeal of collecting taxes, the tax officers are quick to resort to such means without looking into other suitable alternatives. The circular clearly instructs them to avoid doing that."

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, October 16 2020. 21:07 IST
RECOMMENDED FOR YOU
.