The Central Board of Direct Taxes (CBDT) which is a part of Revenue and Ministry of Finance, is responsible for administration of direct taxes through IT Department. The CBDT will soon have a single-window financial information database of taxpayers which has a 360 degree profiling of income, source of income and spending. CBDT will improve data mining and business intelligence vis-a-vis the database which has information like TDS, annual information reports, excise, service tax and value added tax (VAT). There are around 3.5 crores ITR filed annually, and the tax department selects 3 to 4 Lakh cases for scrutiny based on risk profiling. What are the income tax return? Income Tax Return or ITR is the process of declaring total income of an individual or a firm, to the IT Department of India at the end of each financial year. Financial Year: The financial year begins on 1 st April of the current year and ends on 31 st March of the next year. Assessment Year : This is the year which f...