Govt likely to bring back single tax return system for search cases

Single return may cover six years plus part-year when investigation is done

Individuals and businesses facing income-tax searches will be able to file a single return covering six years plus the part-year in which investigation is done, instead of filing separate returns for each year concerned, according to a government official.

 

This aligns with the block-assessment scheme introduced last year for search and requisition cases. This took effect on September 1, 2024. The scheme mandates the income for the block period be assessed as a whole, rather than separately for each year.

 

According to the official, this will reduce legal disputes and make tax assessment quicker and easier. He said: “This system