New Provision for Cross-Verification of Inconsistencies in ITR: Finance Bill 2025 [Read Bill]
Through the identification of discrepancies between assessment years, the Income Tax Department will be able to improve the accuracy of tax assessments
![New Provision for Cross-Verification of Inconsistencies in ITR: Finance Bill 2025 [Read Bill]](https://www.taxscan.in/wp-content/uploads/2025/03/New-Provision-Cross-Verification-Inconsistencies-ITR-Finance-Bill-taxscan.jpg "New Provision for Cross-Verification of Inconsistencies in ITR: Finance Bill 2025 [Read Bill]")
Section 143(1) of the Income-tax Act, 1961 has undergone substantial changes as a result of the Finance Bill 2025. A new provision that permits cross-verification of inconsistencies in ITR has been included, improving the process of processing income tax returns (ITR). Through the identification of discrepancies between assessment years, the Income Tax Department will be able to...
Section 143(1) of the Income-tax Act, 1961 has undergone substantial changes as a result of the Finance Bill 2025. A new provision that permits cross-verification of inconsistencies in ITR has been included, improving the process of processing income tax returns (ITR).
Through the identification of discrepancies between assessment years, the Income Tax Department will be able to improve the accuracy of tax assessments.
The initial processing of taxpayers' income tax returns is governed by Section 143(1) of the Income-tax Act, 1961. Before issuing an intimation, the tax department is permitted to make specific prescribed alterations to the return under this clause. Among these modifications are the correction of the return's mathematical flaws; correction of false statements that are evident from the information provided in the return.
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Amendments to Section 143(1)
By allowing the tax authorities to look for discrepancies between the current return and returns submitted in prior assessment years, the Finance Bill 2025 adds a new level of complexity to the processing of tax returns.
By this, the officials can verify taxpayers' claimed information against their prior filings; find inconsistencies and guarantee accuracy in tax returns and disclosures, reduce mistakes and possible misreporting to improve tax compliance.
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A taxpayer who did not provide the relevant numbers in their current return yet claimed a credit on their prior return.
It is anticipated that this modification will improve the integrity of tax assessments by streamlining the return processing system and guaranteeing that previous tax filings do not conflict with current claims.
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