CAG flags Rs 25,085 crore tax effect from 1,902 assessment lapses
Economic Times 1 hr ago·14 Aug 2026, 1:58 am
The Comptroller and Auditor General (CAG) has identified significant tax lapses in various assessments. These lapses have resulted in a substantial tax effect, indicating potential under-assessment of tax. The CAG's findings are important for investors as they highlight the need for improved tax assessment and collection practices. This can impact government revenues and potentially influence fiscal policies. Investors should watch for any follow-up actions by the government or tax authorities in response to the CAG's report. This could include changes to tax laws or procedures to prevent similar lapses in the future.
Excerpt from Economic Times
The CAG identified 1,902 tax lapses involving over twenty-five thousand crore rupees. These cases involved incorrect tax rates and faulty income computations. Many lapses occurred after demonetisation during the 2017-18 assessment year. Assessing officers failed to apply relevant sections in numerous unexplained…Read the original at Economic Times
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