SKP Tax Alert
20 October 2015 | Volume 8 Issue 19
India moving towards paperless Revenue Audits
The Central Board of Direct Taxes (CBDT) has issued an internal communication to its officers to commence the use of email-based communication for paperless Revenue Audits.
Under this initiative, the notices and information requirements for Revenue Audits shall be sent through email and taxpayers can also submit their reply via email. Therefore, the taxpayer will not have to visit the tax office unnecessarily. This initiative will be particularly helpful in smaller cases where the issues involved are limited and the taxpayer is able to provide the necessary information without being physically present.

This initiative is being launched as a pilot project for non-corporate taxpayers. Initially, 100 cases would be selected where Revenue Audit has been initiated based on certain specified parameters. The tax authorities shall obtain prior consent of the taxpayer before initiating the paperless Revenue Audit. 
In such cases, all communication with the taxpayer will be made to the email address specified in the tax return.

Based on the outcome of the pilot project, the initiative is expected to be extended to other categories of taxpayers including corporate taxpayers. This is a welcome move from the government to usher in greater efficiency and transparency for Revenue Audits and to make tax compliance less cumbersome.

This initiative is in line with the statement made by the CBDT Chairperson stating that the government is working on initiatives where 99% of the taxpayers need not see their offices. The details of this statement are available in Tax Trends – our quarterly direct tax newsletter.

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