What is CASS in income tax
In income tax, particularly in India, CASS stands for Computer-Assisted Scrutiny Selection. It is an automated, algorithm-based system used by the Income Tax Department to identify and select tax returns for scrutiny based on various risk parameters. This reduces manual intervention and helps to focus on potential cases of tax evasion.
How CASS works
- Risk parameters: The CASS system flags returns for scrutiny by analyzing specific risks. These could include high refund claims, significant deductions, foreign transactions, or mismatches between the declared income and information from other sources like Form 26AS or the Annual Information Statement (AIS).
- Case types: A case selected by CASS can lead to a limited or complete scrutiny.
- Limited Scrutiny: The examination is focused only on the specific area flagged by the CASS system, such as a property sale or foreign tax credit claim.
- Complete Scrutiny: This involves a comprehensive examination of all aspects of the tax return.
- Issuing a notice: Once a case is selected by CASS, the Assessing Officer issues a scrutiny notice under Section 143(2) of the Income Tax Act.
- Faceless assessment: CASS is a key part of the Income Tax Department’s faceless assessment scheme, where taxpayers interact virtually with the tax authority, promoting greater transparency and efficiency