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Jun 30, 2025
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ITR Scrutiny Gets Stricter: How To Respond To An Income Tax Notice?
Filing your Income Tax Return (ITR) is only the beginning of the compliance journey. The more challenging part could be if you receive a notice from the Income Tax Department for any potential error or mismatch of data in your ITR filing.
It's important for taxpayers to know how to respond to an income tax notice effectively and avoid potential complications.
Why Scrutiny Is Tighter This Year
The Income Tax Department has picked nearly 1.65 lakh cases for scrutiny for Assessment Year (AY) 2026, which is three to four times more than usual.
Of these, over one lakh scrutiny notices have already been served under Section 143(2) of the Income Tax Act. This section empowers the I-T Department to conduct a detailed assessment of the return if it finds discrepancies or high-risk financial behaviour.
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