IT warns not to file incorrect returns | Fusion - WeRIndia

IT warns not to file incorrect returns

IT warns not to file incorrect returns

Recently, the income tax (I-T) department has been coming across evidence of tax malpractices in Mumbai, Bengaluru, and Ludhiana.

Due to these findings, they have issued an advisory to caution salaried taxpayers against claiming any incorrect deductions or under reporting their income.

Offenses like these are punishable under provisions of the Income Tax Act.

The I-T department’s advisory warned people to not use services of “unscrupulous intermediaries”. They have also threatened to refer cases of such malpractices to other enforcement agencies, who will take further action.

In some cases, fraudulent claims can also delay the issuance of refunds. When there are cases of high risk, the department may examine and verify the details submitted by the taxpayers.

The surveys taken in Bengaluru, Mumbai, and Ludhiana showed that some salaried employees were claiming tax benefits for house property. These people actually did not own property at all.

Other people claimed deductions for donations or contributions made to institutions. However, they had not actually donated or contributed to these places.

Authorities have been using technology to track down the people making false claims or evading their taxes.

In Bengaluru, some employees from leading technology companies had made false claims in their tax returns.

This was done through a man who posed as a chartered accountant.

Some cases from Ludhiana and Bengaluru have been referred to the Central Bureau of Investigation (CBI).

This year, due to salary in the new return forms, the government has already asked for details such as allowances that are not tax-exempt, value of perks, and profits.

The I-T department’s advisory specifically mentioned the trust-based system of the automated Centralized Processing Center (CPC) in Bengaluru.

They said that they have an extensive risk analysis system for the CPC. It is aimed at identifying people who aim to subvert the trust-based system of the CPC.

The main purpose of this advisory is to ensure that nothing like this happens again in the future by discouraging young boys and girls from doing tax malpractices when they are older.

Image Credit: Nick Youngson CC BY-SA 3.0 Alpha Stock Images

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