The Income Tax Department aims to finalize reassessments for 170,000 notices issued between March 2021 and March 2024 by March 2025. These notices were prompted by discrepancies in income reported in tax returns compared to data available with the department.

During the three-year period, approximately 600,000 individuals had their cases reopened, primarily targeting those with incomes exceeding Rs 50 lakh. Of these cases, assessments have been completed in around 430,000 instances, with orders passed accordingly.

The total financial implications of these reassessments are substantial, likely exceeding thousands of crores of rupees, although exact figures are yet to be confirmed. Notices were issued under Section 148 of the Income Tax Act, which allows for the reopening of assessments for up to six years if income evasion is suspected.

The CBDT guidelines specify that financial thresholds for reopening assessments remain applicable, particularly noting changes introduced by the Finance Act, 2021, which extended reopening provisions for cases over a decade old with income exceeding Rs 50 lakh.

Reassessments are conducted following the issuance of notices, allowing assessing officers to review taxpayers’ returns if there are grounds to suspect undisclosed taxable income.