CBDT clarifies no special drive to reopen House Rent Allowance (HRA) cases in India.
India's Central Board of Direct Taxes (CBDT) has clarified that there is no special drive to reopen cases related to House Rent Allowance (HRA) claims, addressing concerns about potential retrospective taxation and large-scale reopening of cases. The income tax department stated that any apprehensions about these matters are baseless. Data analysis was conducted in select high-value cases to scrutinize discrepancies between rent payments made by employees and rent receipts received by landlords during the fiscal year 2020-21, but this was not a widespread reopening of cases. The primary objective of the e-verification exercise was to address information mismatches specifically for that fiscal year, and the department reiterated that there is no special drive to re-open such cases.