New Income Tax Rules: Taxpayers should not make this mistake while claiming TDS, otherwise the Income Tax Department will send a notice

New Income Tax Rules 2025: Under the new rules, ITR scrutiny for FY 2025-26 has become more stringent. Many reasons including mistakes in TDS claim and high-value transactions can now become the reason for ITR scrutiny.

New Income Tax Rules 2025: The process of filing Income Tax Returns (ITR) for the financial year 2024-25 (Assessment Year 2025-26) is in full swing. So far more than 60 lakh returns have been filed, out of which about 1 lakh have been processed. But this time the tax department has implemented new rules regarding ITR scrutiny. Tax officials have been instructed to crack down on tax evasion and its biggest weapon is data analytics and AI i.e. Artificial Intelligence.

Now the bank accounts of taxpayers, spending habits, investments and declared income – all these are being investigated in depth. Special attention is on those people whose cash transactions are less in their bank accounts, but heavy expenditure is visible on real estate, foreign travel or luxury brands.

Scrutiny framework being prepared with data analytics and AI

According to reports, the Income Tax Department is now sending notices to those people who have very few transactions in their bank accounts but are making high-profile expenditure. Experts say that now such “mismatch” cases are being investigated on priority, where less income is shown in the return but the expenditure in real life is very high.

Scrutiny is being done on the basis of information about foreign travel, gold purchase, investment in mutual funds or property. Now the tax department is not assuming that only big companies or businessmen evade taxes. Now the common people are also under scrutiny, who are living a ‘high standard’ life by showing less income.

Now the government is seeing through real time data analysis who is spending how much and what is being declared in their ITR. Credit card expenses of more than Rs 10 lakh in a year, property deals worth more than Rs 30 lakh, cash deposits of more than Rs 2 lakh – all these high-value transactions are now under investigation.

New rules for ITR scrutiny

Under the new rules implemented by the Income Tax Department for ITR scrutiny for the financial year 2025-26, investigation will be mandatory in some cases, which include:

CS01 i.e. tax survey cases: If a tax survey has been conducted in your place under section 133A, then your ITR will go to scrutiny.

CS02 and CS03 i.e. search and seizure cases: All ITRs of those who have been raided or documents seized between 1 April 2023 and 31 March 2025 will be under special surveillance.

CS05 i.e. cases of repeated concealment of income: If you had previously concealed income of Rs 50 lakh (metro city) or Rs 20 lakh (non-metro) in any year, then the next ITR will go directly to scrutiny.

CS06 i.e. on receiving input from agencies: If any input is received against you from CBI, ED or any other agency, then your ITR will also be investigated.

What mistakes can put ITR under scrutiny?

  • Not disclosing interest on FD or savings account
  • Claiming wrong TDS
  • Claiming tax exemptions for which you do not have valid documents
  • Not disclosing investments made in the name of wife or children

Under Section 64 of the Income Tax Act, if you have invested your money in the name of a family member, then the tax liability will be yours.

The entire financial behavior of taxpayers is under surveillance

Now the Income Tax Department is not only keeping an eye on small mistakes, but also on the entire financial behavior of taxpayers. If there is a big difference in your income and expenditure, then a notice for scrutiny may come.

Important tips for ITR filing

  • Match Form 26AS, AIS and bank statements properly
  • Declare even the smallest income honestly
  • If you do business, keep a complete record of cash transactions
  • If you have expensive hobbies, then also tell the source of their income

Now the Income Tax Department is fully equipped with data and technology. If there is a difference between your declared income and actual expenses, a scrutiny notice can come anytime. This is the time to pay tax in a transparent manner – otherwise a notice is certain.

The post New Income Tax Rules: Taxpayers should not make this mistake while claiming TDS, otherwise the Income Tax Department will send a notice first appeared on informalnewz.

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