ITR Filing 2025: The process of filing the Income Tax Return (ITR) for financial year 2024–25 (assessment year 2025–26) is in full swing. The last date is 15 September, even though some distance is distant, but taxpayers will not only have to fill the form, even after that, they will have to be vigilant. The reason for this is that this time the Income Tax Department is marking a large number of cases for scrutiny.
Investigation of more than 1.65 lakh cases started
According to official data, the Income Tax Department has so far selected about 1.65 lakh cases for detailed investigation under section 143 (2). This number is much higher than in the past years. Experts say that it is not enough to file ITR only. If the department sees disturbances, notice may come. Even if you have filled the returns on time and right.
What reasons can tax notice come?
1. Not showing high-value transactions in ITR
If you have made some special major transactions and have not shown them in ITR, the department can send them a notice by matching them with AIS (Annual Information Statement). This includes:
- Cash deposit of more than ₹ 10 lakh
- Credit card bill payment of above ₹ 2 lakh
- Mutual fund investment of more than ₹ 2 lakh
- Bonds or debenture above ₹ 5 lakh
- Equity investment of more than ₹ 1 lakh
- Property purchasing more than ₹ 30 lakh
- RBI bond investment above ₹ 5 lakh
2. Do not show income properly on changing jobs
If you have changed the job during the year and claimed tax deduction from both companies but did not show the correct income by adding Form 16s, then the income can be missing. This increases the risk of scrutiny.
3. Selection of wrong ITR form
If you do not fill the right ITR form according to your income category, then it can be considered as declaration of incomplete income. This technical mistake can also cause penalty.
4. Not showing income like interest, rent
Benefits of interest, fare, share or crypto on savings account or FD. If they are not shown properly in the return, the department can consider it as undeclared income. Even tax-free income is necessary to report.
5. Claiming fake deduction
If you have claimed cuttings like section 80C, 80D or HRA without documentary evidence, then it is a serious violation. According to the tax expert, a penalty of up to 50% on wrong claim, and deliberate fraud can impose under Section 270A up to 200%.
6. Sudden fall in income
If your income has a sudden decline in the previous years, the department can ask for clarification related to it. It will be necessary to give evidence of the reasons like loss of job or cut in salary.
7. Form 26AS or AIS not matching TDS
If you have shown the income you have shown, the TDS detail form is in 26AS or AIS, then the notice can be sent due to income mismatch. This mistake often occurs with salary taxpayers and freelancers.
8. wrong or missed entry
If it is found during the assessment that you have deliberately hidden an entry or fake documents, then a heavy penalty can be imposed under Section 271AAD.
What to do when notices come?
- Check PAN and Din: Every notice has the Document Identification Number (DIN), which is necessary to check.
- Understand the section of notice: Know which section the notice has come under, such as section 139 (9) (wrong returns) or 143 (2) (scrutiny).
- Keep all the documents ready: Keep all the information and proofs related to income, investment and deduction safe.
- Contact Tax Advisor: Seeking professional advice increases the answer process and can reduce penalty.
- Answer in deadline: Every notice has a deadline. The department can take further action on the delay in the answer.
Also read: ITR Filing 2025: More than 75 lakh returns files so far, but can be delayed in refund; Learn what is the reason