ITR Filing 2025: The process of filing Income Tax Return (ITR) for the financial year 2024–25 (Assessment Year 2025–26) is in full swing. The last date 15 September may be some distance away, but taxpayers will have to exercise full caution not only till filling the form but also after that. This is because the Income Tax Department is marking a large number of cases for scrutiny this time.
Investigation of more than 1.65 lakh cases started
According to official figures, the Income Tax Department has so far selected about 1.65 lakh cases for detailed investigation under section 143 (2). This number is much higher than in previous years. Experts say that just filing ITR is not enough. If the department finds any discrepancy, a notice can be sent. Even if you have filed the return on time and correctly.
For what reasons can a tax notice be sent?
1. Not showing high-value transactions in ITR
If you have made some particularly big transactions and have not shown them in ITR, then the department can match them with AIS (Annual Information Statement) and send a notice. This includes:
- Cash deposits of more than ₹10 lakh
- Credit card bill payments of more than ₹2 lakh
- Mutual fund investments of more than ₹2 lakh
- Bonds or debentures of more than ₹5 lakh
- Equity investments of more than ₹1 lakh
- Property purchases of more than ₹30 lakh
- RBI bond investments of more than ₹5 lakh
2. Not disclosing income correctly when changing jobs
If you have changed jobs during the year and claimed tax deduction from both the companies but did not show the correct income by combining Form 16s, there may be an income mismatch. This increases the risk of scrutiny.
3. Selecting the wrong ITR form
If you have not filled the correct ITR form as per your income category, it may be considered as incomplete declaration of income. This technical mistake can also lead to penalty.
4. Not showing income like interest, rent
Interest received on savings account or FD, rent, profit from shares or crypto. If these are not shown properly in the return, then the department can consider it as undeclared income. Even tax-free income is required to be reported.
5. Claiming fake deductions
If you have claimed deductions like section 80C, 80D or HRA without documentary proof, then it is a serious violation. According to tax experts, a penalty of up to 50% on wrong claim, and a penalty of up to 200% for deliberate fraud can be imposed under section 270A.
6. Sudden drop in income
If there is a sudden drop in your income compared to previous years, then the department may seek clarification related to it. It will be necessary to provide proof of reasons like job loss or salary cut.
7. TDS mismatch with Form 26AS or AIS
If the TDS details in Form 26AS or AIS differ from the income you have shown, a notice may be sent due to income mismatch. This mistake is often seen with salaried taxpayers and freelancers.
8. Wrong or missed entries
If during assessment it is found that you have deliberately concealed any entry or submitted fake documents, a heavy penalty can be imposed under section 271AAD.
What to do when you receive a notice?
- Check PAN and DIN: Every notice has a Document Identification Number (DIN), which is important to check.
- Understand the section of the notice: Know under which section the notice has come, such as section 139(9) (wrong return) or 143(2) (scrutiny).
- Keep all documents ready: Keep all information and proof related to income, investments and deductions safe.
- Consult a tax advisor: Seeking professional advice can speed up the response process and reduce penalties.
- Respond within the deadline: Every notice has a deadline. Delay in response may lead to further action by the department.
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