CAG identified 1,902 tax assessment lapses with a total tax effect of Rs 25,085 crore
GK and monthly revision
CAG flags Rs 25,085 crore tax effect from 1,902 assessment lapses
The Comptroller and Auditor General (CAG) flagged 1,902 tax assessment lapses with a tax effect of Rs 25,085 crore, primarily involving incorrect tax rates and faulty income computations. Most lapses occurred in the 2017-18 assessment year, post-demonetisation, where assessing officers failed to apply relevant sections in unexplained transaction cases, leading to widespread under-assessment. This highlights systemic gaps in tax administration and scrutiny mechanisms, making it a critical topic for economy and governance sections in competitive exams.
Source: Economic Times. This summary and analysis are AI-written from that report and are not individually fact-checked — confirm names, dates and figures with the source before you rely on them.
Revision structure
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Quiz and mock-test revision path
Key points
Exam-ready takeaways
Majority of lapses pertained to Assessment Year 2017-18, following demonetisation (Nov 2016)
Key issues: incorrect tax rates applied and faulty income computations by assessing officers
Assessing officers failed to invoke relevant sections in unexplained transaction cases
Resulted in under-assessment of tax in most identified instances
How to study
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