The process of filing Income Tax Returns (ITR) for the financial year 2024–25 (Assessment Year 2025–26) is going on actively. The last date, September 15, is still some time away, but taxpayers need to be very careful not just while filling the form, but also after filing it. This is because the Income Tax Department is selecting a large number of cases for scrutiny this time.
Over 1.65 Lakh Tax Cases Being Checked
The Income Tax Department has started checking more than 1.65 lakh ITR cases under Section 143(2). This number is much more than in past years. Experts say that just filing your ITR is not enough. Even if you file it on time and correctly, you can still get a notice if something is wrong or missing.
Not Reporting Big Transactions Can Lead to a Notice
If you made big payments or investments and did not show them in your ITR, you can get a notice. The Income Tax Department checks these things through your AIS (Annual Information Statement). This includes cash deposits above ₹10 lakh, credit card bills over ₹2 lakh, mutual fund or bond investments, buying property over ₹30 lakh, and more. If these are not reported, the department may take action.
If you changed your job during the year and claimed tax deductions from both jobs, but did not show the total income correctly, there will be a mismatch. This can lead to a tax notice, even if you filed the return on time.
Using the Wrong ITR Form
If you choose the wrong ITR form based on your income, your return will be called incomplete. This is also a mistake and can lead to a fine.
Not Showing Income from Other Sources
If you earn interest from savings accounts or fixed deposits, rent from property, or profits from shares or crypto and do not show this in your ITR, it may be treated as hidden income. Even if some income is tax-free, it still needs to be shown. If you claim tax deductions like 80C, 80D, or HRA without proper documents, it is a big mistake. You may have to pay a 50% fine for false claims, or even 200% if it is done on purpose.