Have big unexplained expenses? You can face IT review of past 10 years

In the recent Union Budget, a clutch of changes in the reassessment regime were announced. These changes have come into effect from April 1, 2022. The change has extended the scope for the Income Tax Department to re-open past assessments. The department can go back up to 10 years to scrutinize the finances of a company or an individual if the aggregate income or unexplained expenditure or entries in the book that escaped assessment over multiple years is Rs 50 lakh or more.

Against this backdrop, Rahul Charkha, Partner at Economic Laws Practice (ELP) has been invited by Business Standard to speak on their podcast titled ‘Have big unexplained expenses? You can face IT review of past 10 years.’ Rahul is of the opinion that taxpayers should maintain consistency in the information submitted to authorities, like reconciliation between GST and IT Returns before submission. He also suggests taxpayers to maintain documents of high value spending, including those made on credit cards over the years and records related to property deals.

Listen to the podcast here: https://bit.ly/3OkY2rg