Only 1% of tax returns filed every year are taken up for scrutiny
Question: I have earned some income in India that will require me to file a tax return. I am worried that once I do so, I will be called by the tax department for completing the assessment. Should I avoid filing the return?
ANSWER: You should file the tax return by July 31, 2025 if you have earned taxable income in India during the current financial year. Failure to file the return would have adverse consequences and may result in increasing the burden by the levy of interest and penalties. Your fear of the return being scrutinised and requiring you to appear before the tax authorities is unfounded. The reason is that only one per cent of the tax returns filed every year are taken up for scrutiny where there is credible information available with the tax department that there may be under-reporting of income. The scrutiny of a tax return takes place only in those cases which are flagged by algorithm-based data analytics. Thus, the entire process of making a scrutiny assessment is undertaken on the basis of objective criteria, which has eliminated any scope for arbitrariness. Even assuming that an income-tax return is taken up for scrutiny, the taxpayer can be represented by his Chartered Accountant and the whole process would take place without personal appearance under the faceless assessment scheme. Therefore, you should not have any fear of filing the tax return as there is a 99 per cent chance that it would be accepted and a summary assessment would be made.
Question: My daughter has completed two years of internship in Canada and wants to return to India to pursue her professional career. I want to know which Indian cities are safe for single women. Are steps being taken by the Indian Government to encourage women to join the workforce?
ANSWER: According to a recent study conducted by a consulting firm in India, Bengaluru and Chennai are the best cities for women ahead of Mumbai, Hyderabad, Pune, Kolkata, Ahmedabad, Delhi, Gurugram and Coimbatore. The study ranked these cities based on an overall ‘City Inclusion Score’ which is based on three parameters, namely, Social Inclusion Score (SIS), Industrial Inclusion Score (IIS), and Citizen Experience Score (CES). The first score SIS is based on three indicators, namely, city livability, safety and women’s representation in employment. The second score IIS evaluates the extent to which organisations in the city across industries are inclusive for women. The third score CES captures women’s assessment of their cities and covers skilling and employment, care giving support, transport and accommodation, quality of life, and efficiency of local bodies. The government is keen to ensure that cities are gender inclusive and offer an atmosphere where women’s strengths and abilities can be optimised. Therefore, many state governments are making efforts to ensure that cities are comfortable for women and provide avenues for women’s economic success to become business leaders and professional icons.
H. P. Ranina is a practising lawyer, specialising in corporate and tax laws of India.
Question: The uncertainty in weather all over the world as a result of climate change may affect Indian farmers and agriculturists who constitute around 55 per cent of the Indian population. Will this have an adverse impact on economic growth in future?
ANSWER: Climate change will certainly affect all countries in the world and agriculturists will be affected adversely. Therefore the Indian Government is taking a very serious view of the situation and initiating all possible steps to make India a ‘weather-ready’, ‘climate-smart’ nation. A neighbourhood meteorological network is being set up involving all stakeholders in weather reporting, including railways, aviation control centres, as well as power, wind and solar farms. The government is also setting up 300 electronic sensor based observatories and mobile weather stations. All tools of modern technology, like artificial intelligence and machine learning, are being used. Robotics will play a vital role in gathering critical information. Unmanned aerial vehicles (UAVs) will be used extensively for surface and boundary layer meteorological observations. Precise calculations and continuous monitoring will be done to map any sea-level rise. A new initiative called ‘Mission Mausam’ has been launched to make India a global leader in weather forecast systems and climate modelling. To achieve this objective, cutting edge surveillance technologies and systems will be deployed. High resolution atmospheric observations will be conducted using next generation radars and satellites together with high performance computers. This will also help to develop early warning systems for natural disasters, like earthquakes and tsunamis.
HP Ranina is a practising lawyer, specialising in corporate and fiscal laws of India.