SHORT ANSWER:
Yes, the Income Tax Department can reopen old returns under certain conditions.
DETAILS:
- The Income Tax Act allows reopening of assessments if the assessing officer has reason to believe that income has escaped assessment.
- Generally, returns can be reopened within 3 years from the end of the assessment year, but this period can extend to 6 years or more in specific cases involving undisclosed income.
PUNISHMENT / IMPLICATIONS (if applicable):
- If income is found to have escaped assessment, the taxpayer may be liable to pay additional tax along with interest and penalties.
SOURCE:
- Income Tax Act, 1961
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