Income Tax Dept to Scrutinize ‘High-Risk’ Refund Claims for AY 2024-25 under new SOP

The Income Tax Department announced plans to scrutinize high-risk refund claims for the assessment year 2024-25 under a new Standard Operating Procedure (SOP). The SOP aims to identify and investigate refund claims that exhibit signs of potential fraud or discrepancies. The department will use data analytics and risk assessment tools to flag suspicious claims for further examination. This initiative is part of the government’s efforts to enhance tax compliance and prevent revenue loss due to fraudulent refund claims. Taxpayers are advised to ensure the accuracy and legitimacy of their refund claims to avoid scrutiny.