Income Tax Scrutiny: Notices and Responses

Income tax scrutiny assessment is an essential procedure used by the Income Tax (IT) department to ensure that taxpayers comply with tax laws. Scrutiny aims to verify the accuracy of a taxpayer’s return and ensures that all financial details provided are genuine. If discrepancies are found in the filed returns, the IT department issues a scrutiny notice. This process is vital to detect underreporting of income, tax evasion, and other tax-related issues. Through a thorough income tax assessment process, taxpayers are subject to a detailed review of their income, deductions, exemptions, and claims.