No need to respond to tax notices for below Rs 100

No need to respond to tax notices for below Rs 100 The Income Tax Department  has asked assessees not to respond to notices of arrears of paltry amounts  like Re 1, Rs 4 and Rs 6 as demands of less than Rs 100 would be adjusted  against future refunds. The Department has issued the clarification in  response to reports that the Central Processing Centre (CPC), Bangalore, is  sending notices for payment of tax arrears as small as Re 1, Rs 4 and Rs 6  and thus causing hardship to assessees. "As per extant procedure, demand of  less than Rs 100 is not enforced but is liable for adjustment against future  refunds," said the Central Board of Direct Taxes (CBDT) in a release. The  communication from the CPC for partly amounts to tax payers, it said, "is  not a demand notice. This measure is, in fact, an assessee-friendly  exercise". The Department has also written to all chief commissioners to  amend such entries, if approached by
taxpayers. THe I-T Department, it said,  had created a central repository at Bangalore for better demand management  and asked all officers to collate demand lying at various places. "It was  suggested that taxpayers should also be informed about the same so as to  enable them to take necessary action if the outstanding demands were  incorrect. This measure was aimed at providing greater transparency.  Therefore, a communication has been sent to taxpayers informing them about  existing arrears," the release said. – Source - www.financialexpress.com