PTIC India is leading Financial Advisory Company in India.

Income Tax Scrutiny

1. Manual scrutiny cases

  • Not Filing Your income tax Return
  • Mismatch in TDS Credit between the claim and 26AS
  • Non Declaration of Exempted Income
  • Claiming Large Refund in return of income
  • Taking double benefit due to change in job
  • High Value Transactions
  • Any other notice

2. Compulsory scrutiny cases

»  Cases involving addition in an earlier assessment year in excess of Rs. 10 lakhs on a substantial and recurring question of law or fact which is confirmed in appeal or is pending before an appellate authority may come under compulsory scrutiny.

»  Cases involving addition in an earlier assessment year on the issue of transfer pricing in excess of Rs. 10 crore or more on a substantial and recurring question of law or fact which is confirmed in appeal or is pending before an appellate authority.

»  Assessments in search and seizure cases to be made under section 158B, 158BC, 158BD,153A & 153C read with section 143(3) of the Act and also for the returns filed for the assessment year relevant to the previous year in which authorization for search arid seizure was executed u/s 132 or 132A of the Act. In the cases where searches, surveys and enquiries have been conducted finally culminate into scrutiny assessments determining the taxable income and the tax liability of the concerned persons and entities. While framing the assessments, all information gathered about the relevant financial transactions through search, survey or enquiry is logically analysed with a view to determining the correct taxable income.The assessees are given an opportunity to explain their stand and rebut the findings of the enquiry. The process for completing scrutiny assessment in these cases is the same as in the case of returns selected for scrutiny assessment

»  Cases where registration u/s 12AA of the IT Act has not been granted or has been cancelled by the CIT/DIT concerned, yet the assessee has been found to be claiming taxex emption under section 11 of the Act. However, where such order’s of the CIT/DIT have beenreversed/setaside in appellate proceedings, those cases will not be selected under this clause.

» Cases in respect of which specific and verifiable information pointing out tax evasion is given by Government Departments/Authorities. The Assessing Officer shall record reasons and take prior approval’ from jurisdictional Pr. CCIT/CCIT /Pr. DGIT/DGIT concerned before selecting such a case for scrutiny.