ITR Scrutiny Deadline: Big news for taxpayers. The deadline for filing ITR for the financial year 2025-26 is July 31, 2026, but June 30 is crucial for taxpayers who have already filed their returns. The Income Tax Department can issue a scrutiny notice under Section 143(2) for eligible returns by June 30.
Returns can be selected for scrutiny if the tax authority finds any discrepancies, or mismatches, between the ITR and Form 26AS, Annual Information Statement (AIS), Taxpayer Information Summary (TIS), bank records, or other financial information. This could also include cases involving unusually high-value transactions, discrepancies in reporting income, reassessment proceedings, or search and survey operations.
What is the meaning of a scrutiny notice?
A scrutiny notice is an official communication sent by the Income Tax Department to validate the details provided in your Income Tax Return (ITR). Its aim is to confirm if the income you reported, along with exemptions, deductions, and investments, align with the information on record. The department carries out this verification by cross-referencing data from Form 26AS, AIS, TIS, banking records, and other financial details.
Why might a notice be issued?
The Income Tax Department may opt to scrutinize returns for specific reasons.
Key reasons include:
– Discrepancies between reported income and recorded data.
– Large financial transactions that do not match the income reported.
– Variances between information in AIS, TIS, or Form 26AS and the return filed.
– Association with an ongoing reassessment procedure.
– Linked to a search or survey previously conducted by the department.
It should be noted that merely receiving a notice does not imply any wrongdoing.
What steps to take upon receiving a notice?
Upon receipt of a scrutiny notice, there’s no need for alarm. Begin by carefully reading the notice and responding promptly.
To access the notice:
– Log in to the Income Tax e-filing portal.
– Navigate to the “Worklist” section.
– Select the “e-Proceedings” option.
– Review the notice and provide the necessary information.
If you concur with the department’s stance, you can submit the required documentation. If you disagree, you can present your perspective and rationale.
What if there is no response?
It is vital to reply to the notice promptly. Failing to do so could lead to several repercussions.
– Potential additional tax demands.
– Application of penalties and interest.
– Possible delays in receiving tax refunds.
– Initiation of further actions by the department.
Throughout the investigation, the department may request bank statements, salary records, investment proofs, deduction documents, and specifics of other financial transactions. Hence, if you have filed your ITR, monitor your email, physical address, and e-filing portal by June 30th. Timely responses can help prevent unnecessary complications.