ITR filing 2025: Another major update is here for taxpayers. CBDT has set some conditions (ITR Scrutiny Rules) for mandatory scrutiny of income tax returns. If a taxpayer’s case matches these conditions, then it is certain to get a notice under section 143 (2). It is not possible to avoid investigation in such cases.
However, if the taxpayer keeps all the documents ready in advance, then tax demand can be avoided by responding to the notice promptly and correctly. CBDT has clarified that such cases cannot be closed without the approval of the Principal Commissioner of Income Tax (PCIT). Vivek Jalan, partner of Tax Connect Advisory Services, is telling about this change (ITR Rules)…
Mandatory scrutiny will be applicable on these cases
1. Survey cases: All returns in respect of surveys conducted under section 133A (except 133A(2A)) after April 1, 2023.
2. Search/Seizure Cases: All cases involving action taken under Section 132/132A between 1st April, 2023 to 1st April, 2025.
3. Cancelled registration: Institutions whose registration has been cancelled under section 12A, 12AB or 10(23C) before March 31, 2024.
4. Large additions in previous cases: If income of more than Rs 50 lakh in metro cities or Rs 20 lakh in other places has been added in the previous assessment and the same has not been appealed or the appeal has been dismissed.
5. Information from legal agencies: Cases flagged by CBI, ED or other agencies.
6. Risk Management System: High-risk financial transactions or matters identified by the risk management system.
7. Reopened Assessments: Cases which have been reopened.
In which cases there will be no mandatory investigation?
1. Returns filed in response to an automated notice (section 142(1)).
2. Cases based on information received from AIS, SFT or CPC-TDS.
3. These cases will be investigated under CASS (Computer Assisted Scrutiny Selection).