CBDT Activates Cycle-6 Risk Management Strategy: Reassessment Protocols for High-Risk Transactions under Section 148 and 148A
The tax administration framework in India is undergoing a massive technological shift, heavily relying on data analytics to curb revenue leakage. In a recent internal directive, the Directorate of Income Tax (Systems) has operationalized the Board's approved Risk Management Strategy (Cycle-6). This strategic move focuses on identifying and disseminating data regarding potential tax evasion instances, specifically targeting high-value and high-risk financial activities.
Through Insight Instruction No.- 87 (Reference No. DGIT(S)-ADG(S)-2/ High Risk Transaction Cases/583/2025-26/1108, Dated 20.03.2026), the department has outlined a clear operational protocol for field officers to initiate reassessment proceedings. The focus remains squarely on invoking Section 148 and Section 148A of the Income Tax Act 1961 against any assessee found non-compliant based on algorithmic risk assessments.
Scope of the Risk Management Strategy (Cycle-6)
The latest cycle of the Risk Management Strategy leverages the robust capabilities of the STR (Suspicious Transaction Report) module. By analyzing verification reports uploaded into the system, the central database has successfully isolated potential red flags across multiple financial periods.
Targeted Assessment Years:
The current dissemination of flagged data pertains to the following periods:
- Assessment Year 2022-23
- Assessment Year 2023-24
- Assessment Year 2024-25