The ITR filing season for the financial year 2024–25 (Assessment Year 2025–26) is moving seriously quickly, and more than 60 lakh returns have already been filed with the Income Tax Department.
Janvi | Jun 28, 2025 |
ITR Filing for FY 2024-25: New Income Tax Rules Bring Mandatory Review of ITR for these Taxpayers
The ITR filing season for the financial year 2024–25 (Assessment Year 2025–26) is moving seriously quickly, and more than 60 lakh returns have already been filed with the Income Tax Department. As per the data available on the Income Tax Department website, nearly 1 lakh of these returns have been processed by the department as well. But this year, the filings are going to be more precarious because the department has tightened the scrutiny measures this year and improved technology for the purpose of tracking tax evasion.
In a major development for the Income Tax Department, they are now placing greater reliance on data analytics and artificial intelligence to assess taxpayer patterns. The authorities have been cross-referencing bank transactions, investments, spending habits and declared income of individuals who may have little or no banking activities but are making significant payments against real estate, international travel, luxury items and other high-end acquisitions. This data-driven initiative aims to identify and segregate lifestyle purchases made with a mismatch of lifestyle and declared income and then execute appropriate action.
Moreover, as per the reports, the department is sending notices to individuals whose fund movement is low but expenses are unusually high. The government’s attention is now on ordinary individuals, not just large businesses, who live high-standard lifestyles while showing relatively modest incomes in their ITRs. High-value activities such as credit card spending above Rs 10 lakh per annum, property purchases above Rs 30 lakh, and cash deposits over Rs 2 lakh are being closely monitored.
As per the new scrutiny framework, certain returns will mandatorily come under investigation.
Several frequent mistakes continue to bring taxpayers under the scanner. These include failure to report interest income from fixed deposits or savings accounts, incorrect TDS claims, and claiming exemptions without proper documentation. Another common issue is the non-disclosure of income generated from investments made in the names of spouses or children.
As per Section 64 of the Income Tax Act, such income is taxable in the hands of the person who made the investment, not the family member.
Receiving an ITR notice is no longer limited to technical errors. The department is now analysing the overall financial behaviour of taxpayers. A noticeable gap between reported income and lifestyle is enough to initiate scrutiny, even if the return is otherwise correctly filed.
To avoid scrutiny, taxpayers should ensure that the details in their ITR match those in Form 26AS, the Annual Information Statement (AIS), and their bank records. All sources of income—no matter how small—should be declared honestly. Business owners should maintain accurate records of cash transactions, and individuals pursuing expensive hobbies or luxury purchases should clearly state the source of income used to fund them.
In case of any Doubt regarding Membership you can mail us at [email protected]
Join Studycafe's WhatsApp Group or Telegram Channel for Latest Updates on Government Job, Sarkari Naukri, Private Jobs, Income Tax, GST, Companies Act, Judgements and CA, CS, ICWA, and MUCH MORE!"
