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Income Tax Dept Orders for Mandatory Selection of Scrutiny Cases

Mandatory to Select Tax Scrutiny Cases Under Guidelines

Income tax authorities have been instructed to mandatorily find out the cases wherever they detect any suspicion of tax evasion on returns for thorough scrutiny during the current financial year, according to the instructions released by the Central Board of Direct Taxes (CBDT).

Additionally, the board encouraged them to identify any cases that involved an addition and had been investigated under Section 148, which gives Assessing Officers the authority to estimate a person’s income based on the available information.

Moreover, cases where extra income was received during the earlier assessment year due to a recurring legal situation or because of specific facts before tax officials need to be picked up and thorough scrutiny.

Read Also: ITAT: Authority Should Not Cross the Limit in Limited Scrutiny Cases

The income tax agency focuses on a narrow range of cases for thorough scrutiny while only randomly inspecting a small portion of the annual returns filed. According to the rules for forced selection, the government is monitoring a particular group of taxpayers to make sure they honestly report their income.

According to the instructions for the current fiscal year, cases involving surveys, search and detect operations, or notices issued under Section 142(1) of the Income Tax Act requesting details shall be investigated.

However, the department has made it plain that specific guidelines must be followed and that the International Taxation Central Circle of Income Tax requires the permission of high-ranking officials in addition to requesting the requisite analysis of these forms.

Cases that are submitted for review using this approach are not required to be sent to the anonymous assessment unit, as per the CBDT instructions.

The government has been gradually expanding the sectors where tax deduction at source (TDS) or tax collection at source (TCS) are now required and expects to exploit a large amount of data currently available to broaden the tax base. A database is being created using this data, information from the GST, and information from other organisations. The data is then compared to the tax returns to determine whether or not the income is appropriately disclosed.

The deadline for charitable and religious trusts to submit registration applications was also extended by the I-T department on Wednesday until September 30.

Disclaimer:- "All the information given is from credible and authentic resources and has been published after moderation. Any change in detail or information other than fact must be considered a human error. The blog we write is to provide updated information. You can raise any query on matters related to blog content. Also, note that we don’t provide any type of consultancy so we are sorry for being unable to reply to consultancy queries. Also, we do mention that our replies are solely on a practical basis and we advise you to cross verify with professional authorities for a fact check."

Published by Arpit Kulshrestha
Arpit Kulshrestha seeks higher interests in financial services, taxation, GST, I-T, etc. Writes articles with depth knowledge and is extensive for the same. The resources provide effective articles for the products of SAG infotech which provides taxation and IT software. Writing from observations and researching makes his articles virtuous. View more posts
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