- Reasons for Scrutiny
The Income-tax Department pursues scrutiny assessment by means of following a set of predetermined guidelines. The process is also carried out using sophisticated technology that aids in identifying instances of errors. Listed below are some of the most common reasons for the enactment of this provision:
- Non-filing of tax returns
- Rapid rise or fall in income
- Abnormal value of transactions
- Mismatch in TDS credit
- Understated income
- Non-declaration of exempted income
- Underpayment of tax or misappropriation