Overview

• The Income Tax Department is deploying AI-driven data analytics to match declared incomes against high-value transactions and lifestyle spending
• Returns linked to surveys, raids, past undeclared income or intelligence from agencies such as the CBI and ED will be automatically selected for scrutiny
• Non-audit taxpayers now have until September 15, 2025, to file ITRs but must pay full tax liabilities by July 31 to avoid penal interest
• The new tax regime is set as the default option, raising the tax-free threshold to ₹12 lakh and adding a ₹75,000 standard deduction for salaried individuals
• Penalties for misreporting income can reach 200% of the evaded tax, and revamped ITR-1 and ITR-4 forms simplify filings for small taxpayers