Income Tax News: You must respond to any questions the Income Tax Department may have about income or taxes within the allotted time. In the event that a notice is sent, reply right away. Your Income Tax Return (ITR) might be chosen for close examination if you neglect to take these steps. Your ITR may technically fall under the intense scrutiny category.
Continued Inquiry and Intensive Scrutiny
In addition, the Income Tax Department will keep asking you questions and providing you with answers. Under “intensive scrutiny,” a person’s ITR will be examined in order to find evidence of tax evasion in a number of ways, such as by hiding undeclared income or misrepresenting it. A search operation against such an individual may also be carried out by the Income Tax Department.
CBDT’s Criteria for Thorough Examination
The criteria for choosing ITRs for thorough examination have been released by the Central Board of Direct Taxes (CBDT). This only applies to the current fiscal year, which runs from 2023 to 2024. According to the guidelines, a comprehensive examination of the income tax returns is required in cases where the Income Tax Department surveyed individuals involved in tax evasion and seizure and sent notices regarding the matter.
Selective Inquiry Based on Income Uncertainty
According to a senior officer, the Income Tax Department only inquires about taxpayers whose income details they are unsure of. According to the department, the taxpayer provided false information regarding their income. has concealed his income, which is considered to be “black money.” Tax evasion is exactly what this is.
Mandatory Responses to Income Tax Queries
If the Income Tax Department asks him a question in this scenario, he has to respond within the allotted time. The matter is resolved if the department is pleased with its response. Further action will be taken in accordance with the guidelines if the responses are not satisfactory.
Crucial Response to Income Tax Inquiries
It is crucial in this kind of situation to respond to the Income Tax Department’s inquiries. This creates a path for resolution. Paying a penalty can settle a situation where someone unintentionally provided false information about their income. There could be deadly repercussions if the taxpayer answers the questions carelessly.
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