Cases Of Sudden Spike In Income Would Be Identify By I-T Department

At the time of filing revised tax returns who showed a sudden spike in income after demonetization should now prepare themselves to face scrutiny.

These cases are in addition to the 1 lakh high-risk cases already identified by the income tax department for scrutiny based on information gathered from banks. Whose income has a sudden spike when filing revised tax returns, they will identify by the I-T department and the department is ready to take a look at suspect cases.

The department is proposing to be selective and focused instead of going in for mass scrutiny to make the process more effective. It’s also trying to make the exercise non-intrusive, so the limited scrutiny will be completely online, carried out via emails. A higher revised income could indicate hidden non-tax paid incomes or unaccounted cash from previous years being disguised as a rise in sales, according to officials.

There have been instances of individuals and businesses showing higher income or sales and then a revision in returns filed after demonetisation, apart from reports of high-value purchases. The tax laws allow for filing revised returns if some income is missed out unintentionally.

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