Income tax department started sending scrutiny notices many cases related to refund claims: The Income Tax Department has started sending scrutiny notices to taxpayers for the financial year 2021-22. Around 1000 notices have been sent to the taxpayers through the faceless system. Most of the notices are those in which the taxpayer has claimed refund of deducted tax. The Income Tax Department had emailed people last year to recheck and confirm their refund claims. Now, out of those cases, the high refund cases have been taken under scrutiny.
In this, partial scrutiny will be done against some taxpayers and detailed scrutiny will be done against some. For this, this year also the cases have been selected completely through digital method. All income tax return filers should ensure that they have not received any unanswered notices on their e-mails. Failure to respond to the notice on time may also attract a penalty of up to Rs 10,000. In such a situation, the tax demand can be issued by rejecting the refund for the exemption sought through the faceless medium itself.
Questions on refunds, exemptions, mutual funds and land deals
- Apart from refunds, there are many such cases in which notices have been sent by the department.
- Mainly those who have shown tax-free income in the returns such as income from agriculture or have sought exemption under various sections, those cases have also been taken under scrutiny.
- Cases where there is a discrepancy between the GST and the turnover shown in the returns have also been taken up for scrutiny.
- Sub-Registrar’s reporting on high value transactions such as purchase or sale of large land or property, higher investment in mutual funds etc. in proportion to income etc. have also formed the basis of selected cases for scrutiny.
- If someone has shown less income as compared to the previous year, then such cases are also red flagged by the department.