Income Tax Scrutiny Update
CA Raj Chawla
Quotes of the day:
1. As You Wake up Today, Remember You are ,Created to Succeed Designed to Win, Equipped to Overcome Anointed to Prosper, and Blessed to Become Blessings for the Others
2. Alone I Can Say, But Together We can Talk. Alone I can Enjoy, But Together We can Celebrate. Alone I can Smile, But Together We can Laugh. That is the beauty of Human Relations. We are nothing without Each Other.
Income Tax Scrutiny Update:
1. Income Tax Dept uses data analytics and risk scoring to decide who gets a scrutiny notice. Here are the key triggers:
2. AIS & TIS Mismatch: If your Annual Information Statement (AIS) and Tax Information Statement (TIS) don't match your ITR, expect a notice. Ensure your ITR syncs with AIS/TIS before submitting.
3. GST-Income Tax Mismatch: GST and Income Tax data are linked. If your GST turnover doesn't match your ITR, it'll raise a red flag.
4. High Cash Deposits: Cash deposits above ₹10 Lakh in savings or ₹50 Lakh in current accounts trigger SFT reporting. Explain the source of large cash deposits.
5. Aggressive Deductions: Claiming unusually high deductions under Chapter VI-A or donations to unknown trusts can attract scrutiny.
6. Recurring Issues: If the Dept made a tax addition in your case before and you claim the same deduction again, it may lead to compulsory scrutiny.
7. Lifestyle vs Income: If your lifestyle expenses don't match your declared income, the AI-driven Insight Portal will flag it.
8. To stay under the radar:
· Reconcile ITR, AIS, 26AS, and GST data
· Document gift deeds, loan agreements, etc.
· Be consistent in your tax filings
· Respond promptly to e-Verification queries
9. Tax compliance is about data, not luck. Stay on top of it.
10. Follow the CA Raj Chawla NICAI Update Channel on WhatsApp to get the latest ICAI news, announcements, professional updates, and important notifications instantly Link :https://whatsapp.com/channel/0029Vb6q4i8LNSZwQ3bbxY2j
With best regards
CA (Dr) Raj Chawla
B.Com (Hons), FCA, FCS, FCMA, LLB
MIMA, DISA, MICA, Phd, ASA (Aust), CMP (USA)
712, New Delhi House
27,Barakhamba Road, New Delhi-110001
Ph. Off. 011-43581083
Cell: 98110-81083