Under I-T Lens:
1.6 Lakh Tax Returns Under Scrutiny; M&A Discrepancies Among Red Flags

Jun 27, 2025

Over one lakh notices have already been issued to individuals and companies under the Income Tax Act.

In a major compliance drive, the Income Tax Department has selected around 1.65 lakh cases for scrutiny for assessment year 2025, ahead of the June 30 deadline — the last date to issue notices for ITRs filed in FY 2024–25.

This marks a sharp surge, with the case volume three to four times higher than in previous years.

According to official sources, over one lakh notices have already been issued to individuals and companies, under Section 143(2) of the Income Tax Act, 1961. These notices initiate the process of detailed assessment and verification of the income tax returns filed.

Key parameters that prompted the selection of cases this year include: Unusual cash deposits, unexplained substantial bank credits, capital introduced without disclosed sources, turnover mismatches when compared to GST data, and merger and acquisition-related discrepancies.

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