ITR Filing: Income Tax Department warns Taxpayers against False Claims in Income Tax Returns

The Income Tax Department has issued a strong warning to taxpayers against submitting income tax returns with incorrect exemptions and deductions. Authorities highlighted the serious consequences of such behaviour, which can result in large penalties and even imprisonment.

The Income Tax Department, in collaboration with the South Central Railway (SCR), recently held an ‘Outreach Awareness Programme’ in Vijayawada. The event’s goal was to educate employees on the importance of accurate tax filings, providing them with essential knowledge on tax compliance and preventing them from relying on intermediaries who may make false claims on their behalf.

Key Highlights

Self-ITR Filing Importance

A Divisional Railway Manager warned against relying on intermediaries to file tax returns. He warned that if these intermediaries provide wrong information and make misleading claims, taxpayers could face harsh penalties.

He encouraged employees to educate themselves on tax regulations and submit their own returns to avoid any potential legal difficulties.

Strict Penalties for Fraudulent Claims

N. Abhinaya, Joint Commissioner of Income Tax, emphasized the program’s fundamental message, which focused on assisting employees to comply with tax regulations. She revealed that in the financial years 2022-23 and 2023-24, multiple salaried employees filed false claims. Ms. Abhinaya warned that making improper deductions could have disastrous consequences. False claims would carry a 200% penalty and possible imprisonment.

Massive Misconduct Identified

The I-T Department’s verification methods in Andhra Pradesh and Telangana revealed numerous cases of incorrect exemptions and deductions, resulting in considerable refunds being falsely claimed. The department has taken action against the consultants and intermediaries involved in these fraudulent operations.

Conclusion

The Income Tax Department’s current initiative highlights the need for accuracy and honesty in taxpayer tax return filings. Adhering to tax regulations can help individuals avoid heavy penalties and legal consequences. It recommends staying up-to-date, filing your returns correctly, and having a stress-free tax season.