25/3/2025, 6:23:02 pm

Income tax department to compare your last year ITR with current year

The Finance Bill 2025 amends Section 143(1) of the Income Tax Act, enabling the Income Tax Department to check inconsistencies between current and previous year's ITRs during processing. This aims to resolve errors early, potentially reducing future tax notices. Effective April 1, 2025, for AY 2025-26, it will compare next year's ITR with the one filed in July 2024.