Craft convincing response to tax notice, backed by relevant documents

Non-appearance and failure to respond on time can have serious consequences

Income-tax returns (ITR) should be filed with meticulous attention to details to avoid complications at a later date. In the wake of the Central Board of Direct Taxes (CBDT) coming out with new guidelines for scrutiny of ITRs, applicable to financial year 2023–24, this task should be undertaken with even greater seriousness.

Ashish Mehta, partner, Khaitan & Co., says, “Guidelines are issued every year to prescribe the types of cases to be taken up for assessment based on a variety of factors.”

Let us understand the parameters laid down by the CBDT for initiating a scrutiny:

Tax evasion and old cases: The tax