Cost inflation index notified at 376 for FY26 compared to 363 in previous year
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Mint
15 hours ago
- Mint
UK-based arms dealer Sanjay Bhandari declared ‘fugitive economic offender' by Delhi court
A Delhi court on Saturday, July 5, declared UK-based arms consultant Sanjay Bhandari a fugitive economic offender under the Fugitive Economic Offenders Act, 2018. The Enforcement Directorate filed a plea accusing him of money laundering and said that Sanjay Bhandari "absconded" to the UK in 2016. This comes after India's plea seeking his extradition was recently turned down by a UK court. The investing agency filed a criminal case of money laundering against the UK-based arms dealer and others in February 2017. Taking cognisance of an Income Tax department charge sheet filed against him under the anti-black money law of 2015, the ED filed a charge sheet against him in 2020.
Economic Times
a day ago
- Economic Times
ITR scrutiny notice: Income Tax Department looks at these parameters while selecting ITRs for scrutiny
ET Online ITR scrutiny notice: Know what are the parameters followed by Income tax dept about when an ITR will be selected for scrutiny The Income Tax Department has recently rolled out comprehensive guidelines aimed at ensuring complete transparency in routine tasks, such as sending out income tax scrutiny notices. These guidelines explain to taxpayers why their income tax return (ITR) has been selected for a more detailed examination (scrutiny). Over the past few years, the Central Board of Direct Taxes (CBDT) has been issuing similar circulars every year that that outline the criteria for the mandatory/ compulsory selection of ITRs for scrutiny. The latest circular was issued for FY 2025-26. These guidelines clarify how the compulsory selection of ITRs for thorough scrutiny works (including the parameters) and detail the procedures that need to be followed in such specified cases. Check out the info below to learn more about the guidelines for choosing an ITR for scrutiny that came out on June 13, 2025. What should taxpayers note about the latest ITR scrutiny guidelines for FY 2025-26? The guidelines for FY 2025-26 are somewhat similar to the ones issued last year for FY 2024-25 but for this year, there are some new Bhimanshu Kansal, founder of Kansal Bhimanshu Legal and Practices, says, one of the changes made in the FY 2025-26 guidelines relates to Section 133A that is the survey and search says: 'One of the parameters for such selection is where a survey under Section 133A of the Income-tax Act (other than survey under Section 133A(2A) has been conducted on or after 01.04.2023. Notably, in prior years, selection of returns towards such parameters was subject to some exclusion/conditions viz. such a survey leads to detection information/materials pointing out tax evasion.'However, there is no such exception carved out in the guidelines for selection of the cases during FY 2025-26. Kansal says: 'This means on a plain reading of guidelines, in the event of the survey happening under Section 133A of the Income-tax Act is sufficient for such selection, irrespective of the fact that this leads to tax evasion or not, which can be a panic situation for fairly surveyed Assessees as well.'Chartered Accountant Ashish Karundia provides a contrarian view about survey related cases: "The absence of a specific reference to information or material indicating tax evasion in survey-related cases may not be significant, as previous scrutiny guidelines issued before FY 2024–25 also did not mandate such a requirement." Karundia explains: "It is to be noted that information obtained during a survey under Section 133A is considered 'information' that may indicate that taxable income has escaped assessment. The tax authorities, therefore, remain empowered to conduct scrutiny under Section 143(2) or initiate reassessment proceedings under Section 148 based on such information." Accoding to Deepashree Shetty, Associate Partner, BDO in India, the FY 2025-26 guideline also mentions the timelines for assessment proceedings u/s 142(1) of the IT Act for ITRs filed for FY 2023-24. These are: Issuance of notice u/s 143(2) of the IT Act (intimation of selection of ITR for scrutiny): June 30, 2025 Time limit for completion of scrutiny by National Faceless Assessment Centre (NaFAC): March 31, 2026 Since June 30, 2025, many scrutiny notices have already been issued and this is a routine exercise according to the newly released Accountant Jigar Suba, says: 'While the circular (compulsory scrutiny selection) itself may seem routine, there is a significant risk that many scrutiny cases may go unnoticed by both clients and professionals. There are few key areas of concern as below including but not limited to cases flagged on the basis of: Search or survey actions (past or recent)- Compulsory scrutiny. Trusts/ Institutions/ receiving donations u/s 80G whose registrations are being cancelled or not approved (up to March 31, 2024) and claiming deduction/ exemption- Compulsory Scrutiny. Information received through SFT, TDS, Investigation wing, or enforcement agencies, or Additions in previous years on a recurring issue of law and/or fact amounting to exceeding Rs 50 lakh in metro cities and Rs 20 lakh in other cities. Metro cities for this purpose means Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune.' Also read: You can know what final income tax scrutiny order contains even before it is issued What happens after an ITR is selected for scrutiny? Shetty from BDO in India says: 'Once the ITR is selected for scrutiny, the jurisdictional Assessing Officer (JAO) shall issue a notice calling for additional details or information to enable them to complete the scrutiny. The taxpayer must provide the required information through the online tax compliance portal as per the timelines stipulated by the Assessing Officer.' What are the guidelines for selecting an ITR for scrutiny for FY 2025-26? On June 13, 2025, the CBDT has issued guidelines outlining the processes for the mandatory selection of income tax returns that will undergo thorough scrutiny in the Financial Year (FY) 2025-26. Shetty says, 'The guidelines are issued in their latest circular. These parameters relate to cases pertaining to search and seizure, survey, cases where the tax department has information regarding tax evasion.'Here's a table showing some of the guidelines: SystemsScenario code Parameters CS 01 Cases pertaining to survey u/s 133A of the Income-tax Act,1961 (Act)- Case(s) of the assessee(s), in whose case survey u/s 133A of the Act (other than survey u/s 133A(2A) of the Act) has been conducted on or after 01.04.2023 CS02 Cases pertaining to Search & seizure/ requisition on or after 01.04.2023 but before 01.09.2024:Case(s) of the assessee, in whose case Search u/s 132 of the Act was initiated or Requisition u/s 132A of the Act was made, on or after 01.04.2023 but before 01.09.2024. CS03 Search & seizure/ requisition on or after 0 1.09.2024 but before 01.04 .2025Case(s) for the Assessment Year 2025-26, in whose case Search (For u/s 132 of the Act was initiated or Assessing Officers in Requisition u/s 132A of the Act was made, on or after 01.09.2024 but before 01.04.2025. CS 05 Cases involving addition in an earlier assessment year(s) on a recurring issue of law or fact and/or law and fact: Where the addition m an earlier assessment year( s) on a recurring issue of law or fact and/or law and fact (including transfer pricing issue) is: a. exceeding Rs. 50 lakh m eight metro charges at Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune;b. exceeding Rs. 20 lakh in charges other than eight metro charges; and where such an addition(i) has become final, as no further appeal has been preferred against the assessment order; or(ii) has been upheld by the Appellate Authorities in favour of Revenue; even if further appeal of assessee is pending, against such order. CS0 6 Cases related to specific information regarding tax-evasion: Cases, in respect of which: (a) specific information pointing out tax-evasion for the relevant assessment year is provided by any law-enforcement agency, (Investigation Wing/ Intelligence/ Regulatory Authority/ Agency, etc.) ; and (b) the return for the relevant assessment year is furnished by the assessee. Source: CBDT circular dated June 13, 2025 Also read: Documents for ITR filing FY 2024-25 (AY 2025-26): Eight documents you need to file income tax return What did the tax department say about Section 142 (1) tax notices? Tax notices under Section 142(1) are sent when you have been asked to file your ITR, but haven't done so. The tax department mas made it clear that these specific Section 142(1) cases will be handled using the computer-assisted scrutiny selection (CASS), rather than being processed by tax department officers through the compulsory scrutiny in the circular said: 'It is clarified that where return has been furnished in response to notice u/s 142(1) of the Act and such notice u/s 142(1) of the Act was issued due to the information contained in NMS Cycle/ AIS/ Statement of Financial Transactions (SFT)/ CPC-TDS information/ information received from Directorate of I&CI, such return will not be taken up for compulsory scrutiny. Selection of such cases for scrutiny will be done through the CASS cycle.' What did the tax department say about sending 143 (2) tax notices by March 31, 2026? CBDT said: 'Jurisdictional Assessing Officers (JAOs) shall upload the underlying documents for access by NaFAC in the following cases which are to be completed by NaFAC on or before 31.03.2026 and Notice u!s 143(2)/l42(1) of the Act calling for information shall be served on the assessee through NaFAC in these cases: Cases (other than search & seizure/survey) in which notices u/s 148 of the Act have been issued where return is either furnished or not furnished in response to notice u/s 148 of the Act. Cases in which notices u/s 142(1) of the Act calling for income tax return have been issued & no returns have been furnished.' What did the income tax department say about non-search cases under Section 148? The CBDT mentioned in this circular that non-search cases selected under Section 148 don't need to be sent to the 'Central Charges' unless they fall under the Board's those uninitiated, the Central Charges is a specialised division within the income tax department that deals with assessments in certain types of cases, especially those related to high-stakes tax evasion, search and seizure cases, and other complicated tax said: 'During the course of Search & Seizure action, information relating to some other persons, who may have one-off/ very few or limited financial transaction(s) with the main assessee group covered in the search u/s 132/132A of the Act, may be found. Such persons are not integrally connected with the core business of the main assessee searched and do not belong to the same business group. Often such persons are also not residing in the same city as that of the main assessee. In such cases, the relevant information is generally passed on to the jurisdictional AO for assessing them u/s 148 (for searches conducted/requisition made after 01.04.2021) of the Income-tax Act, 1961. It is clarified that all such non-search cases selected u/s 148 of the Act are not required to be transferred to the Central Charges unless covered by the Board's guidelines under 299/107/2013-IT( dated 25.04.2014.' N.R. 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Mint
a day ago
- Mint
Income Tax Filing: IT Dept launches ‘TAXASSIST' to help with queries and notices
Months ahead of the 15 September 2025 deadline for filing income tax returns for FY 2024–25, the Income Tax Department has launched a support service called 'TAXASSIST' to help taxpayers with queries and notices during the current filing season. As part of this campaign, the Income Tax Department sends messages or emails to taxpayers, reminding them of important notices or other tax-related actions. Describing the latest initiative, the Income Tax Department said: 'Introducing TAXASSIST, your go-to support for all tax concerns! From helping you navigate departmental communications and keeping your finances in check, to reminding you of key tax deadlines. This campaign is designed to guide, support, and simplify.' The post shared an example highlighting three scenarios in which a taxpayer claimed a deduction under Section 80GGC—a provision that allows tax deductions for donations made to political parties or electoral trusts. The Income Tax Department outlined these scenarios to show how TAXASSIST can assist taxpayers in managing and responding to 80GGC-related claims. If a taxpayer mistakenly claims a deduction under Section 80GGC, TAXASSIST will advise them to revise the return or file an updated income tax return (ITR-U), pay the due taxes and interest, or return any excess refund. The department further warned that ignoring such communication could lead to scrutiny or penalties. If a taxpayer fraudulently claims a deduction under Section 80GGC by making fake or non-genuine political donations, the Income Tax Department treats it as tax evasion. In such cases, TAXASSIST will prompt the taxpayer to revise their income tax return or file an updated return (ITR-U), and pay the due taxes and interest to avoid legal action. If a taxpayer has donated to a legally registered political party, TAXASSIST advises them to retain valid donation receipts and proof of bank transactions, as these may be required for verification. This initiative is part of a broader effort by the Income Tax Department to enhance taxpayer convenience. On Friday, the department also activated the online submission process for Form ITR-B for individuals who have received notices under Section 158BC of the Income Tax Act.
