Open and shut case: new income tax rules offer one-step solution

The new search and seizure rules by the Income Tax (IT) department, announced in the Union Budget 2024-25 on Tuesday, can reduce litigation and improve compliance by ensuring cases are resolved in one go, said Ravi Agrawal, chairman of the Central Board of Direct Taxes (CBDT).

A case will be settled if the taxpayer accepts the department’s findings and agrees to pay “60 percent tax on the undisclosed income,” he said.

These rules come into effect on September 1.

“The procedures after the search take a long time. However, under the proposed scheme,