New tax regime: Big unexplained expenditure may lead to I-T review

Assessees seek clarity from tax consultants on the new regime, fearing reopening notices

Tax consultants and chartered accountants have started receiving a flurry of calls from their clients — both corporate and individuals — seeking clarity over changes in the reassessment regime made during the recently concluded Budget Session of Parliament. Tax experts apprehend the amendments may lead to the income-tax (I-T) department sending out more notices.

The new provisions, effective from April 1, have extended the scope for tax sleuths to reopen the past assessments. Earlier, the tax department could question taxpayers when they had misreported or underreported income in the form of an asset.

Now, if the department gathers evidence that a taxpayer