common queries raised under Section 142(1), grouped by taxpayer type.142(1) – Preliminary inquiry / call for details before or during scrutiny

common queries raised under Section 142(1), grouped by taxpayer type.

These are based on real-world patterns of Income Tax scrutiny notices.


1. For Individuals (Salary / Other Income)

CategoryTypical Queries
Salary Income- Copy of Form 16 from employer(s)
- Salary slips for specific months
- Proof of allowances & perquisites claimed as exempt
House Property- Rent agreement & rent receipts
- Municipal tax payment proof
- Loan repayment statement & interest certificate
Capital Gains- Purchase/sale deeds for property
- Contract notes from stock broker
- Statement of mutual fund transactions
Deductions & Exemptions- Proof for Section 80C investments (LIC, PPF, etc.)
- Health insurance receipts (80D)
- Donation receipts (80G)
Bank Transactions- Bank statements for specific period
- Explanation for large cash deposits/withdrawals


2. For Business / Professionals
CategoryTypical Queries
Books of Accounts- Ledger copies (sales, purchases, debtors, creditors)
- Trial balance & P&L account
- Fixed asset register
GST / Indirect Taxes- GST returns & reconciliation with sales in ITR
- Mismatch details between GSTR-3B and GSTR-1
Cash Transactions- Daily cash book
- Source of high cash deposits
- Explanation for negative cash balance
Expenses- Invoices/bills for major expenses
- Proof of payment (bank transfer, cheque)
Loans & Advances- Loan agreements
- Interest payment proofs
- Source of unsecured loans
TDS Compliance- TDS returns filed
- Proof of tax deducted and deposited

3. For Property / Asset-Heavy Cases
CategoryTypical Queries
Property Purchase- Sale deed & payment proofs
- Source of funds
- Valuation report if applicable
Property Sale- Purchase deed of property sold
- Capital gains computation
- Proof of reinvestment in bonds/property
Other Assets- Proof of jewellery purchase
- Source of investment in gold, vehicles, etc.

4. High-Value Transaction Triggers (AIR/SFT Data)

These usually come when your transactions are reported by banks, mutual funds, or registrars:

  • Cash deposits > ₹10 lakh in savings account in a year.

  • Credit card payments > ₹2 lakh in a year.

  • Purchase of shares/mutual funds > ₹10 lakh.

  • Property purchase/sale > ₹30 lakh.

5. General Information Requests

  • Copy of PAN & Aadhaar.

  • Details of all bank accounts operated during the year.

  • Statement of foreign travel expenses.

  • Proof of foreign assets/income, if any.

  • Details of any gifts received (with donor PAN if applicable).

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