ITR False Claims: If a false claim for refund is detected, a penalty of up to 200 percent can be levied and a jail term can also be imposed.
ITR False Claims: A person falling under the purview of income tax has to file income tax return annually. This year the last date for filing income tax return is 31st July. If anyone does not file income tax return i.e. ITR by this date, then the return will have to be filed later with a penalty. Correct information should be given while filling ITR. No false claim should be made to get a refund. Usually many employed people submit fake rent receipts to avail exemption on HRA. The Income Tax Department has warned taxpayers to avoid such acts.
Recently the Income Tax Department in collaboration with South Central Railway organised an ‘Outreach Awareness Programme’ in Vijayawada. The aim of the programme was to educate employees about the importance of accurate tax filing, to give them the necessary information about tax compliance and to prevent them from relying on middlemen who may potentially file false claims on their behalf.
Up to 200 percent penalty on wrong claims
Addressing the railway employees, Joint Income Tax Commissioner N. Abhinay said that in the financial years 2022-23 and 2023-24, many salaried employees have submitted wrong claims. Abhinay warned that wrong deductions can have serious consequences. If a false claim of refund is caught, a penalty of up to 200 percent can be imposed and jail can also be imposed. N. Abhinay said that many cases of wrong exemptions and deductions came to light in Andhra Pradesh and Telangana. The department has taken action against the consultants and middlemen involved in these fraudulent activities.
Exemption claims must be correct
While claiming deductions or exemptions in your ITR, it is important to ensure that all deductions are genuine and supported by authentic payments and documentation. The claims should not result in misreporting of income. If a taxpayer claims bogus deductions under the Income Tax Act, it is considered a form of tax evasion.
Now the Income Tax Department gets hold of all the data related to the taxpayer with the help of Advanced Information System (AIS) and Transaction Information System (TIS). Due to this, they closely examine the deductions and exemptions claimed by the taxpayers and catch the false claims immediately. Tax evasion includes under-reporting income, over-reporting expenses or claiming fake deductions to reduce tax liability. Penalties vary depending on the nature and severity of the offence.
How to rectify your mistake?
If you have submitted a return with incorrect information, you must file a revised return as per section 139(5) of the Income Tax Act. This provision allows taxpayers to revise their original returns in case of errors or if any income or expense has been inadvertently omitted. Also, if your initial ITR is still not verified, you can use the new ‘Discard’ option on the income tax portal.
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