Income Tax: This Year's ITR Will Be Compared to Last Year’s

The Income Tax Department is becoming more vigilant with each passing year. For Financial Year 2024-25, the department has made it clear that your current year’s Income Tax Return (ITR) will be compared with your previous year’s filing. This means any discrepancy, mismatch, or significant deviation in your income, deductions, or tax liability may trigger a notice.

As a leading Tax Consultant Company in Delhi, we want to ensure taxpayers understand the implications and take the right precautions.

Why Is the IT Department Comparing ITRs Year-on-Year?

The government is increasingly relying on AI-powered systems and automated data reconciliation to:

• Detect tax evasion
• Identify under-reporting of income
• Verify the authenticity of deductions
• Flag unusual changes in income or tax payments

" This approach helps the department identify red flags early and push for better compliance across all taxpayer categories. "

What Kind of Discrepancies Could Trigger Scrutiny?

There are several red flags the department looks for when comparing your current ITR to the previous one:

1. Sharp Increase or Decrease in Income

• A sudden dip in income or an unexplained rise in salary, rental income, or capital gains

2. Mismatch in TDS Claims

• If your Form 26AS or AIS reports higher/lower TDS than what you've claimed
• Cross-check all figures using ITR service in Delhi platforms or professional help

3. Omission of Previous Income Sources

• Forgetting to mention a secondary income stream that was declared in the previous year

4. Drastic Change in Deductions or Exemptions

• For example, claiming high 80C/80D deductions one year and then none the next

5. Change in Tax Regime Without Justification

• Switching from old to new tax regime, or vice versa, without filing the appropriate form or documentation

" Consistency is key. If something has changed, it needs a valid explanation and proof. "

How Can Taxpayers Avoid Trouble?

There are several strategies you can adopt to ensure your ITR stands up to scrutiny:

1. Cross-Verify with AIS and Form 26AS

• The Annual Information Statement (AIS) and 26AS report all your financial transactions
• Ensure all your income and TDS data match these documents

2. Disclose All Income Sources

• Rental income, FD interest, dividend, freelancing income, crypto gains – everything must be declared
• Failing to declare can lead to penalties and scrutiny

3. Use Professional Filing Services

• Rely on experts providing Income Tax service in Delhi to prepare accurate and complete returns
• Avoid DIY filing if your financials are complex

4. Keep Documentation Ready

• Maintain proof of all deductions, investments, exemptions, and income sources

5. Explain Variations When Necessary

• You can use remarks or notes while filing to explain a spike in income or drop in salary

" The best defense against an income tax notice is a well-documented, well-planned ITR. "

Role of a Tax Consultant in Preventing Notices

Working with the Best Tax Consultant company in Delhi can help you:

• Analyze last year’s ITR versus this year’s
• Identify and resolve potential mismatches
• Structure your income and deductions for tax efficiency
• Ensure correct selection of tax regime
• Provide audit support and representation if a notice is received

Real-World Example

• Case: A salaried professional showed Rs. 18 lakh annual income in FY 2023-24. In FY 2024-25, he claimed only Rs. 9 lakh without any job change or break.
• Result: He received a notice for income mismatch. Upon further scrutiny, it was revealed he had freelance income that was not reported.
• Lesson: Transparency and documentation are key.

Tools for Staying Compliant

• Income Tax Portal: Check AIS, TIS, and Form 26AS regularly
• Reconciliation Apps: Use Excel or professional tools to compare year-wise data
• Professional Assistance: Partner with experts offering itr service in Delhi for timely, accurate filing

" A small mistake can lead to a big penalty. Don't leave your ITR to chance. "

Conclusion

As the Income Tax Department gears up for stricter compliance, your ITR for FY 2024-25 will be under more scrutiny than ever before. The comparison with last year’s data means inconsistencies could lead to delays, notices, and penalties.

The solution? Stay transparent, document every detail, and seek help from trusted professionals. Partnering with a reputed Tax Consultant Company in Delhi can make all the difference in filing an error-free, compliant return.

Our team offers specialized Income Tax service in Delhi and itr service in Delhi to help you file accurately, reduce tax liability, and avoid unnecessary trouble.