sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
Direct Tax »
 Auction for Sale (Re-issue) of Government Stock (GS) February 15, 2019
 How to use it to pay tax online to avoid query from I-T Department
 Income Tax Return (ITR) filing: This much TDS you pay on income from Post office savings, PPF, Sukanya Samridhi, Kisan Vikas Patra saving account; but there's a catch
 How scrapping of tax on notional rent on second house will affect individual taxpayers
 Panel drafting direct tax law seeks 30-day extension
 Filled ITR but not submitted it till July 31? You'll have to re-fill using updated forms
 No tax refunds yet for 2018 returns
 Here's how your expenditure on education can fetch you tax benefit
 Govt likely to come up with fresh notification on angel tax in a week
 Income Tax department may become more tech friendly from FY20
 CBDT notifies verification scheme for issuance of e-notices to taxpayers

Income Tax returns (ITR) filing: All your transactions are under taxman's scanner
August, 09th 2018

Income Tax returns (ITR) filing: The department reportedly believes that if a tax payer is filing returns honestly, he/she should not be scrutinised. This will save a tax payer from notice after submitting his/her ITR. Because a notice from the Income Tax office is not something that anyone would like to find in their mailbox.

Income Tax returns (ITR) filings: With digitisation of income records and use of technology it has now become very easy for Income Tax department to keep an eye on tax evaders. The department's access is so vast that records every taxpayer's details, which are already available in a computerised system.

However, sources informed Hindustan newspaper that the Income-Tax department may lessen its scrutiny assessment, adding that in comparison to the last year's one percent scrutiny this may come down to 0.35 per cent this year. The department reportedly believes that if a tax payer is filing returns honestly, he/she should not be scrutinised. This will save a tax payer from notice after submitting his/her ITR. Because a notice from the Income Tax office is not something that anyone would like to find in their mailbox.

That does not mean taxpayers should take it easy or play truant! Far from it! With the use of technology, the Income-Tax department has equipped itself at such level that it reportedly gets information about a taxpayer's income and deposits from other sources. Under Income Tax Act's section 114D and section 114E, the available information is sent to the department's compterised system automatically. This information will reportedly be considered adequate and will lessen scrutiny assessment to 150 per cent.

Notably, under these sections all transactions are covered wherein PAN card is used.

The newspaper informed that scrutiny assessment of the I-T department is accomplished through computer assisted scrutiny selection system. All kinds of transaction related to banking, mutual fund, insurance, purchase of shares along with details of vehicles and property purchase are readily available with the system. The department also receives information related to transactions done through credit, debit and payment applications.

Notably, scrutiny assessment refers to the examination of an income tax return by giving an opportunity to the assessee to substantiate the income declared and the expenses, deductions, losses, exemptions, etc. claimed in the return with the help of evidence.

The Income Tax department examines the returns filed and if it has any reason to believe that the information declared by the assessee is incorrect or incomplete then the case is taken up for scrutiny assessment.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Company Overview

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions