IT Deptt. picks 0.35% cases for Scrutiny out of 6.86 crore returns filed for AY 2017-18

0.35% cases (high tax evasion cases) Selected by IT Deptt. for Income Tax Scrutiny  out of 6.86 crore returns (ITRs) filed for AY 2017-18

As per News Reports, the CBDT/ IT Deptt. has picked up/ selected about 0.35% cases for income tax scrutiny (only high tax evasion cases) out of the 6.86 crore returns (ITRs) filed for AY 2017-18. Out of which approx. 40% cases pertains to ‘limited scrutiny’ and rest 60% are selected for ‘full scrutiny’. Effectively, about 0.20% cases have been selected for full scrutiny of ITRs filed for AY 2017-18.

In view increasing Tax base, the department has faith on the income tax payers, but will not allow evaders to scot free. As a result 99.65% of the return filers can be at peace.

During income tax scrutiny procedure, a taxpayer is required to provide a number of documents to the assessing officer (AO) after his/ her case is picked up. Scrutiny of Income Tax returns has been an issue of grievance for many assessees, due to substantial information requirements followed with substantial demands in certain cases.

Earlier 1-2 per cent of the income tax returns were picked up for scrutiny. However, this time the ration has been brought down to 0.35 per cent.

On one hand, the Income Tax Department is showing faith in taxpayers, while on the other hand it is also making the enforcement unit stronger so that if there is a case of tax evasion, the same can be dealt with in a commensurate manner.

In addition, the IT Deptt is in the process to further simplify the tax filing norms to help the Country (India) improve its ranking in the Ease of Doing Business Global Index.

In 2017-18 fiscal, the CBDT/ Income Tax Deptt. has collected Rs 10.03 lakh crore revenue from income tax and corporate tax, indicating a growth of 18 per cent over last year.

Ref: ET News dt. 9 Aug. 2018

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