Even though the deadline to file Income Tax Returns (ITRs) is still some time away, June 30 is important for people who have already filed their returns for FY 2025-26. This is the last date for the Income Tax Department to send a scrutiny notice under Section 143(2).
Until June 30, the Income Tax Department can select certain tax returns for detailed examination, send scrutiny notices and verify income, deductions, exemptions and other details claimed by taxpayers.
A scrutiny notice does not automatically mean that a taxpayer has committed fraud or made an error. A notice may be issued if the department finds mismatches between the income declared in the return and information available through Form 26AS, AIS, TIS, bank records or other financial disclosures.
A return may be selected if the department notices something unusual or wants to verify certain information.
This can happen if tax officials have conducted searches or surveys related to the taxpayer, if the return is linked to an ongoing reassessment or if there are large or suspicious financial transactions that do not match the income reported in the tax return.
What to do if you receive scrutiny?
If you receive a scrutiny notice, you can check it through your registered email, postal address, or by logging into the Income Tax e-filing portal.
Log in to the portal, go to "Worklist" and then "e-Proceedings".
Open the notice, and submit your response.
You can either agree with the notice and upload the required documents or disagree and provide reasons for your response.
Once submitted, you will receive a transaction number confirming successful submission.
If you do not respond to the notice, this could result in additional tax demands, penalties, interest charges, or delays in receiving refunds.
The department may seek supporting documents such as bank statements, salary records, investment proofs, deduction certificates and details of financial transactions. Officials then compare these documents with the information reported in the return before finalising the assessment.
Also Read | Income Not Taxable? Know If You Still Need To File ITR
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