CBDT clarifies media reports claiming a special drive to reopen cases concerning HRA claims

09 Apr 2024: CBDT clarifies media, Certain instances of mismatch of information as filed by the taxpayer and as available with the Income Tax Department have come to the notice of the Department as part of its routine exercise of verification of data. In such cases, the Department has alerted the taxpayers to enable them to take corrective action. 

The Vice President, Shri Jagdeep Dhankhar lighting the lamp at the 6th Convocation of IIM Bodh Gaya in Gaya, Bihar on April 07, 2024.

However, some posts on social media, as well as articles in the media, have highlighted enquiries initiated by the Central Board of Direct Taxes (CBDT) in cases where employees have made incorrect claims of HRA and rent paid.

At the outset, it is stated that any apprehensions about retrospective taxation on these matters and the re-opening of cases on issues about HRA claims are completely baseless.

Investment cost

Data analysis was carried out in some high-value cases of mismatch between the rent paid by the employee and receipt of rent by the recipient for the FY 2020-21.

This verification was done in a small number of cases without re-opening the bulk of cases, especially since the Updated Return for FY 2020-21 (AY 2021-22) could have been filed by the taxpayers concerned only till 31.03.2024.

It is underlined that the objective of the e-verification was to alert cases of mismatches of information for FY 2020-21 only without affecting the others.  

It is reiterated that there is no special drive to re-open such cases, and media reports alleging that large-scale re-opening is being undertaken by the Department are completely misplaced.

The words related to CBDT clarification in the media are as follows:

1. Central Board of Direct Taxation

2. Notification

3. Depreciation rate

4. Investment cost

5. Networking layer

6. Gateways

7. Connectivity

8. Connection Management

9. Application and management layer

10. Synchronization of the system

Citations for you:

[1] https://www.bodonews.info/2024/04/suvidha-portal-promotes-transparency-in.html

[2] https://www.fipi.org.in/journal/FIPI_Journal_July_Sept_2022.pdf

[3] https://youtu.be/GfRORfyCOFA?si=RRPHWrhcA9KUDfG_

[4] https://www.bodonews.info/2024/04/recpdcl-maharashtra-and-intra-state.html/

[5] https://www.bodonews.info/2024/03/prime-minister-modi-arrives-in-bhutan.html