You can now know why your ITR has been shortlisted for scrutiny by taxmen

The Income Tax department recently released guidelines for selecting tax returns for scrutiny in the financial year 2024-25, aiming to enhance transparency and fairness in the process. Utilizing computer algorithms termed as Computer Assisted Scrutiny Selection (CASS), returns are flagged based on various risk parameters like high refund claims, discrepancies in income and expenses, and non-matching of financial information from different sources. \r

Specific criteria outlined by the Central Board of Direct Taxes (CBDT) include mismatched information, suspected tax evasion, unfiled returns despite notices, and cases arising from search and seizure operations. The guidelines also mandate centralized scrutiny for efficiency and establish a faceless assessment process through the National Faceless Assessment Centre (NaFAC) to minimize bias and expedite assessments. \r

Overall, the new guidelines aim to target potential tax evasion more effectively, streamline the scrutiny process, and ensure transparency and fairness for taxpayers.