The Aryavarth Express
Agency(New Delhi): The Central Board of Direct Taxes (CBDT) has officially addressed recent media reports and social media posts that suggested a large-scale effort to reopen cases concerning Housing Rent Allowance (HRA) claims. According to the Ministry of Finance, these reports are entirely unfounded.
The CBDT clarified that the instances of mismatch between taxpayer-reported data and information held by the Income Tax Department were identified during standard data verification processes. These mismatches primarily involve discrepancies in HRA claims and rent receipts for the fiscal year 2020-21.
“This routine verification exercise alerted taxpayers to discrepancies, enabling them to rectify their submissions voluntarily,” a spokesperson from the department explained. The focus was on a limited number of high-value cases, and there was no bulk reopening of cases. Taxpayers had until March 31, 2024, to file an updated return for the said fiscal year.
The department has stressed that the e-verification was aimed solely at clarifying mismatches for the 2020-21 fiscal year and did not imply a broader re-evaluation of earlier cases or imply any retrospective taxation.
Reiterating their stance, the CBDT affirmed, “There is no special drive to reopen such cases, and any claims of widespread re-openings are completely misplaced.” This statement intends to dispel fears and provide clarity to the public regarding the operational procedures of the tax authority.