'You Have Nothing to Fear': CA Clears the Air on Income Tax Scrutiny Panic

Financial advisor and CA Nitin Kaushik has taken up to X about the recent panic situation among small taxpayers over scrutiny notices from the Income Tax Department.

“There’s been a lot of panic lately: ‘Bulk scrutiny notices being sent to small taxpayers…’” he posted on X. “Relax — that’s nothing but half-baked rumors. Here’s the full picture you need to know.”

 

 

 

 

According to Kaushik, scrutiny notices are not sent out randomly or without reason. “Scrutiny Notices are not randomly sent to everyone. They’re issued only if your ITR shows some mismatch, unusual transactions, or other red flags,” he explained.

And the chances of being picked for scrutiny are slim to begin with. “Only a tiny fraction of total tax returns filed undergo scrutiny every year,” he wrote.

For those who have received notices, he reminded taxpayers that every notice comes with a unique identifier. “Notices are issued under something called DIN (Document Identification Number) — a unique tracking number,” he said. “You can verify its authenticity directly on the Income Tax portal.”

He also broke down how scrutiny is selected, "CASS (Computer-Assisted Scrutiny Selection) — Mostly random, based on system checks and  Compulsory Scrutiny — For specific high-risk or suspicious cases.”

Most people, he assured, don’t have to worry about a full-blown investigation. “In most cases, it’s Limited Scrutiny — tax officers focus only on specific points, not your entire income.”

The scrutiny process itself has also changed for the better. “Entire scrutiny process is now Faceless & Online — no shady meetings, no room for bribery,” the advisor said.

Even if you are under scrutiny, the system is designed to give taxpayers a fair chance. “Before any final order, a draft order is shared, and taxpayers get enough chances to reply.”

If at any point you feel you’ve been treated unfairly, there is a mechanism to appeal. “If you feel harassed or face an unfair assessment, you can escalate it to the High-Pitched Assessment Committee,” he added.

Nitin also issued a clear warning against falling prey to middlemen or scams. “Never pay anyone claiming to ‘settle’ your case or posing as a tax officer. Everything is online, trackable, and transparent.”

And finally, a simple message for honest taxpayers: “If your tax returns are clean and genuine, you have nothing to fear. Don’t fall for WhatsApp forwards or fear-mongering tweets.