Scrutiny of returns - be ready for the shock
Have you filed your Income Tax return? Do you think it's time to relax? Don't! You may be in for a shock. Your return may be picked up for scrutiny. You won't know why your return has been picked up and you have no right to know. Actually the Income Tax department selects cases for scrutiny through computer Assisted Scrutiny System (CASS). CASS was developed to introduce transparency and eliminate discretion in selection of cases for scrutiny. It also uses third-party information which the department gets from third parties such as banks and mutual funds under annual information return (AIR) to select cases for scrutiny.
Scrutiny of returns helps the income-tax department unearth hidden income and raise more tax revenue. It is an audit of the income-tax returns filed by the taxpayer to assess his real tax liability.
Commissioners can also pick up cases locally for scrutiny based on specific information about an assessee.
Chartered Accountants are happy that there will be more scrutiny this year - more scrutiny means more money - for all the stakeholders!