Every person needs to report their Income tax returns appropriately in compliance with the start of the filing season. Avoiding errors and misreporting is important during ITR filing for FY 2024-25 (Assessment Year 2025-26).
Without any problems, the majority of returns are processed; even a minor discrepancy may trigger an investigation via the income tax department.
Post income tax return (ITR) filing, you may face scrutiny from the Income Tax Department. Below are the areas where the investigation may come to you.
Tax Survey Cases Categorised as CS01
If the survey has been conducted by the Income Tax Department, then the taxpayer’s furnished ITR will be checked at their premises u/s 133A. W.e.f April 1, 2023, the same rule comes into force.
Discrepancies in Filed Income Tax Returns (ITR)
Your ITR information will be further investigated if discrepancies in the amounts are there. Unable to declare the incomes like interest from FDs, or failing the deduction under the wrong provisions, or without any evidence, is due to the discrepancies.
Recurring Income Tax Additions (CS05)
If it is discovered by the tax department that you had not declared the large amount of income and didn’t appeal, then your next ITR shall be investigated. In metro cities amount must not surpass Rs 50 lakh, and in non-metro cities, it is Rs 20 lakh.
Incorrect TDS Amount Reported
TDS amount discrepancy, if any, tends to be one of the most common errors in the ITR filing. It occurs due to the employer’s mistake, or they were unable to submit the correct TDS, and then the tax investigators may delay the return processing.
Search and Seizure Proceedings Under CS02 and CS03
ITR will be investigated if the taxation body has ever raided anyone’s house or office or seized any documents u/s 132 or 132A between April 1, 2023, and March 31, 2025.
Tax Implications of Investments Made in a Spouse’s Name
Some of the taxpayers proceed to save on taxes by buying property or other investments in the name of their spouse or children. You are required to pay the tax as per Section 64 of the I-T Act, 1961 if you file the amount for investment, which is not even in your name.
Read Also: CBDT Notifies New Guidelines for Selecting ITRs for Scrutiny
Law Enforcement Information Received (CS06)
Agencies, like the CBI or ED, if reported to the income tax department about your hidden income or evaded taxes, then your ITR shall be on the list of investigation automatically.
