CBDT Clarifies that Media Reports Claiming Re-Opening Cases of HRA Claims is Baseless

CBDT clarifies that apprehensions about retrospective taxation and re-opening of cases on issues pertaining to HRA claims is completely baseless

In a recent press release dated April 8, 2024, the Central Board of Direct Taxes (CBDT) has addressed and dismissed media reports claiming a widespread re-opening of cases related to House Rent Allowance (HRA) claims. The CBDT emphasizes that such reports are entirely baseless and unfounded.

The clarification comes in response to growing concerns and misconceptions regarding retrospective taxation and the alleged re-opening of cases concerning HRA claims. The CBDT statement asserts that there is no initiative or special drive to extensively re-open these cases.

The press release acknowledges that certain instances of data mismatch have been identified during routine verification exercises conducted by the Income Tax Department. In such cases, taxpayers have been promptly notified to rectify any discrepancies found. However, this routine process has been misinterpreted in some social media posts and media articles.

Specifically, the CBDT highlights that data analysis was carried out in a limited number of high-value cases concerning discrepancies between rent payments made by employees and rent receipts received by landlords for the Financial Year 2020-21. This verification process was focused on FY 2020-21 alone and did not involve a widespread re-opening of cases.

Importantly, the CBDT emphasizes that taxpayers had the opportunity to file Updated Returns for FY 2020-21 (Assessment Year 2021-22) until March 31, 2024. The recent data verification was aimed at addressing specific cases of information mismatches for the mentioned financial year, without impacting other cases.

In conclusion, the CBDT reiterates that there is no ongoing campaign to re-open HRA-related cases on a large scale. Any suggestions or claims to the contrary in media reports are inaccurate and misleading.

For taxpayers, this clarification should offer reassurance regarding the status of HRA-related tax matters, emphasizing the Department’s commitment to fair and transparent processes.

To Access the related Press Release CLICK HERE

To Access the New Forms released by Income-Tax Department CLICK HERE

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