Scrutiny of Income Tax Returns

there is no such guidelines for selection of any return for scrutiny.

returns get selected for scrutiny by ITS the software of IT dept. which catches major transaction through ur PAN no. and major change in income as compared with last year, haa only one guideline is there that

if on any assessee there is rade  or survey by IT department then on that client cont.3 yrs scrutiny will be levied

Regards

CA shailesh Ghase

My Friend, from Time to Time CBDT isuues Guidelines for picking up cases for scrutiny.These guidelines are based on basis like:-

1) Class of assesses.

2) Amount of Loss, Refund, etc

3) Rate of Net Profit

4) Status of assesses (like Listed Companies,etc)

5) And so on

For Example (THE FOLLOWING ARE FICTIONAL EXAMPLES):-

1)  HUF RETURNS declaring TOTAL INCOME in excess of Rs.10  LACS.

2) Returns exceeding 50 lacs of total income and showing net profit of less than 20%

3) All Construction Business declaring income exceeding Rs. 50 Lacs..

THE GUIDELINES ARE NOT STABLE AS CBDT ISSUES GUIDELINES FROM TIME TO TIME

 I agree with Amir sir, CBDT time to time issues its internal guidelines to its assessing officers to pick up the case for scrutiny.

Selection is done from time to time as per guidlines framed by the CBDT. There is also limit to select the number of scrutiny cases that is 2% of total number of returne filed during the year.

DEAR SIR

IN CASE OF SCRUTINY CAN AO ASK FOR PREVIOUS YEAR INFORMATION ON VERY FIRST SITTING

L U GHURIA

Originally posted by : L Ghuria
	DEAR SIR IN CASE OF SCRUTINY CAN AO ASK FOR PREVIOUS YEAR INFORMATION ON VERY FIRST SITTING L U GHURIA

yes, he has right to ask to furnish the opening balance, of accounts, so that he can ascertain the transactions of current year.

Dear Sir,

Is any list of guildelines for the A.Y. 2011-12

heyy....any 1 Know about CBDT guidelines for selecting Scrutiny Cases???