Fri Jun 27 10:50:00 UTC 2025: Okay, here’s a news article summarizing the provided text, focusing on the Income Tax developments:

**Headline: Income Tax Department Intensifies Scrutiny, Targeting Discrepancies Between Income and Spending**

**New Delhi:** The Income Tax Department is ramping up its efforts to identify and crack down on tax evasion, leveraging data analytics to scrutinize taxpayers’ financial behavior, officials said. As ITR filing for FY 2024-25 (Assessment Year 2025-26) gains momentum with over 60 lakh returns filed and nearly 1 lakh processed, the department is implementing stricter guidelines, paying close attention to inconsistencies between reported income and spending habits.

Tax experts say the department is now linking various data points, including bank account activity, investment patterns, spending on travel, real estate, and luxury goods, against declared income. Individuals showing low cash transactions but significant spending in high-value areas are particularly under the scanner.

“The government is now investigating ‘mismatch’ cases on priority,” said one tax expert. “They’re looking at those who declare less income in their returns but are living a high-profile lifestyle.”

The department is using real-time data analysis to identify discrepancies. High-value transactions such as credit card spending exceeding Rs 10 lakh, property transactions over Rs 30 lakh, and cash deposits surpassing Rs 2 lakh are being flagged.

The new scrutiny rules for FY 2025-26 outline specific grounds for mandatory investigation, including cases related to tax surveys (CS01), search and seizure operations (CS02 & CS03), instances of previously undeclared income exceeding Rs 50 lakh in metro cities and Rs 20 lakh in non-metro cities (CS05), and information received from agencies like the CBI and ED (CS06).

The department has also identified common mistakes that can trigger scrutiny, such as failing to disclose interest income, claiming unsubstantiated exemptions, and not declaring income from investments made in the name of family members.

Taxpayers are urged to reconcile their Form 26AS, AIS, and bank statements, honestly declare all income, maintain records of cash transactions (especially for businesses), and declare the sources for income of expensive hobbies.

“With new technology and stricter rules, the Income Tax Department is no longer tolerating discrepancies,” warned one expert. “If there’s a difference between your declared income and expenses, ITR scrutiny may soon knock at your door. Transparency is key.”

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