Using cards for big spending? Beware!

Are you spending major purchases, investments or availing expensive services ? then make sure your declared income in your income tax return will justify your expensive spending. As long as IT department will be able to corelate your declared income and expensive spendings you can escape the scrutiny. Currently, scrutiny cases are picked up through computer bases criteria if it exceed certain ceiling.

CBDT recently holds high-level meeting to review the conditions for scrutiny of income tax cases. In order to ensure that the honest taxpayers stay free from the hassle of scrutiny and authorities should focus on risky or default assessees, it has been decided to to follow Matching Concept (Income Vs Expenditure) while selecting the cases for scrutiny. It means your expenditures should justify or corelate with your incomes and it is not the case then authority will do scrutiny.

CBDT may also scrutinize who have made large cash deposits in banks during the demonetisation period and thereafter. Recently launched Operation Clean Money also gathered huge number of data which can be analysed to generate maximum revenue from the faulty or non taxpayers.

As income tax return filing for the AY 2017-2018 has begun, it is advisable to ensure the correctness of your income, expenditure and investments details so that they can be justified and scrutiny can be avoided. This is the year for which authorities will hold maximum scrutiny due to demonetisation effect.

Happy Income Tax Return filing!

Leave a Reply

Your email address will not be published. Required fields are marked *