FinMin says Income Tax Returns scrutiny reduced to 0.25% in AY 2018-19

Finance Ministry has said that the income tax returns picked up for scrutiny has reduced to 0.25 percent of the total ITRs filed in assessment year (AY) 2018-19, from 0.55 percent in AY 2017-18.

“IT Dept is changing-from just enforcement to facilitating better taxpayer services. In continuation of the same, the no. of cases selected for scrutiny has reduced drastically over the years,” the ministry said in a tweet late on Tuesday.

IT Dept is changing-from just enforcement to facilitating better taxpayer services. In continuation of the same,the no. of cases selected for scrutiny has reduced drastically over the years.
Diagram below reflects the average overall percentage of scrutiny.(1/n)#EaseOfCompliance pic.twitter.com/SBIRfUwOvf

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— Ministry of Finance (@FinMinIndia) August 4, 2020

Official data released showed the number of income tax scrutiny cases was 0.71 percent in AY 2015-16, 0.40 percent in AY 2016-17, 0.55 percent in AY 2017-18 and 0.25 percent in AY 2018-19.

The ministry, however, did not give the absolute number of cases picked up for scrutiny during these years.

State-wise data also showed while the scrutiny as percentage of income tax returns (ITRs) filed has come down, the number of returns filed during AY 2018-19 has gone up compared to AY 2017-18.

Scrutiny cases in Odisha reduced to 0.12 percent in AY 2018-19, from 0.37 percent in the year before. Similarly, for Punjab, it came down from 0.40 percent to 0.14 percent in AY 2018-19.

As many as 10.29 lakh ITRs were filed in Odisha in AY 2018-19, against 8.31 lakh in AY 2017-18.

In Punjab, 27.65 lakh ITRs were filed in AY 2018-19, up from 23.44 lakh filed in 2017-18.

In West Bengal 38.93 lakh ITRs were filed in AY 2018-19, while cases picked up for scrutiny was 0.25 percent. This compares to 33.64 lakh ITRs filed and 0.59 percent scrutiny cases in 2017-18.