Say Goodbye To ITR Hassles: Income Tax Dept Launches ‘TAXASSIST To Simplify Filing

After the income tax return deadline was extended to September 15, 2025, the Income Tax Department has introduced TAXASSIST' to address commonly asked queries and notices during the present ITR filing period.

During a period in which the Income tax department is proliferating its use of artificial intelligence, the direct tax collection department intends to remind taxpayers of important notices and tax-centric actions.

The post was further aided with an instance spotlighting three scenarios in which a taxpayer claimed a deduction under Section 80GGC, a provision that allows tax deductions for donations made to political parties or electoral trusts.

Scenario 1:  Deduction Claimed Mistakenly

If a taxpayer mistakenly claims a deduction under Section 80GGC, TAXASSIST will advise them to revise the return or file an updated income tax return (ITR-U), pay the due taxes and interest, or return any excess refund. The department further warned that ignoring such communication could lead to scrutiny or penalties.

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Scenario 2: Fraudulent 80GGC claim

If someone ends up fraudulently claims a deduction under Section 80GGC by making fake or non-genuine political donations, the Income Tax Department treats it as tax evasion. In such cases, TAXASSIST will prompt the taxpayer to revise their income tax return or file an updated return (ITR-U) and pay the due taxes and interest to avoid legal action.

Scenario 3: Made a genuine donation under 80GGC

If a taxpayer has donated to a legally registered political party, TAXASSIST advises them to retain valid donation receipts and proof of bank transactions, as these may be required for verification.

This initiative is part of a broader effort by the Income Tax Department to enhance taxpayer convenience. On Friday, the department also activated the online submission process for Form ITR-B for individuals who have received notices under Section 158BC of the Income Tax Act.

Income Tax Department's Latest Updates

On July 4, 2025, the Income Tax department informed that “taxpayers who have received notice under Section 158BC can now submit Form ITR-B via the e-Proceeding tab on the Income Tax portal.”