The IT Department has flagged 1.65 lakh ITRs for scrutiny in Assessment Year 2025.

The Income Tax Department has flagged approximately 1.65 lakh Income Tax Returns (ITRs) for scrutiny for Assessment Year 2024-25, marking a significant three-fold increase compared to previous years. This surge indicates a heightened focus on ensuring compliance and detecting discrepancies. The selection for scrutiny is primarily driven by data analytics and risk management parameters, identifying returns with potential inconsistencies or high-value transactions. This includes mismatches between income declared and expenditures, or where information from third-party sources suggests undeclared income. Taxpayers whose returns are selected for scrutiny will undergo a more detailed examination of their financial records. This proactive measure aims to widen the tax net, improve tax collection, and discourage tax evasion, reflecting the department's enhanced capabilities in leveraging technology for compliance enforcement. The increased scrutiny emphasizes the importance for taxpayers to ensure accuracy and completeness in their ITR filings to avoid potential legal complications.