Criteria for Scrutiny Cases SUMMARY

Criteria for Scrutiny Cases

The CBDT has given norms for current fiscal for selection of cases meant for scrutiny

Scrutiny is the process of selecting some income-tax returns and examining them closely by calling for extra information and seeing if the details furnished are correct.

Scrutiny on these counts would be generated though Computer Assisted Scrutiny System (CASS) and not through manual intervention.

This is only a selected reproduction of the norms as applicable to most assessees.

• HAVE you bought or sold a house or a plot for more than Rs 30 lakh? Then expect a knock from tax Authorities.

• Realty deals whose value is more than eight times the gross income of the buyer.
• So, if your gross income is Rs 5 lakh per annum and you have bought a house for more than Rs 40 lakh, you could get a call from the department. Gross income, for this purpose, shall be total income plus exempted income minus the total tax paid. This norm is being adopted to ensure that there is no evasion and people who enter into such transactions pay taxes honestly.

• Cash deposit of Rs 10 lakh in your savings account could also bring you on the scrutiny radar. Individual assesses now have to report transactions which get captured in Annual Information Return (AIRs).

• Scrutiny on these counts would be generated though Computer Assisted Scrutiny System (CASS) and not through manual intervention.

• According to the criterion that were discussed at the recent annual conference of the chief commissioners and directors general of income-tax, capital gains of more than Rs 25 lakh could also attract scrutiny by the department in the current financial year. Similarly, loss from house property of more than Rs 2.5 lakh would also invite the I-T department’s scanner.

• The real estate sector, which is known to attract large quantum of black money, continues to draw the attention of tax department. Real estate agents and builders having a turnover of more than Rs 5 crore could attract scrutiny.

• Professionals like doctors, architects whose gross receipts exceed Rs 40 lakh and those who report profit of less than 30% of the gross receipt, can also face scrutiny.

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