From April 2025, the Income Tax Department will compare your current ITR with previous years’ filings to identify discrepancies.
Income Tax Department is set to introduce a change in tax return processing from April 2025. The update aims to improve accuracy and minimise discrepancies in filings. An amendment to section 143(1) of the Income Tax Act will enable tax authorities to compare a taxpayer’s latest Income Tax Return (ITR) with those from previous years.
With this revision, any inconsistency between the current and past returns will be flagged, potentially leading to automatic adjustments.
While this change is meant to streamline assessments and reduce the number of tax notices, it could also have far-reaching consequences for taxpayers.
