Wrong ITRs: Income Tax Dept warns Salaried Class

The income tax department last day warned the salaried class taxpayers against filing income tax returns containing wrong information. While cautioning the salaried class, the department clarified that stringent actions will be taken against persons using illegal means like under-reporting of income or “inflating” deductions while filing their returns. The Central Processing Centre (CPC) of the department in Bengaluru, that receives and processes the Income Tax Returns (ITRs), has issued an advisory specifying such taxpayers should not “fall prey” to unscrupulous tax advisors or planners who help them in preparing wrong claims to get tax benefits. The Advisory said that “If the Department notices any fraudulent claims in the returns, such tax payers may be punishable under various provisions of the Income Tax Act. This may also delay issuance of refunds in such cases. Taxpayers are, therefore, strictly advised not to fall prey to false promises or mis-advice by unscrupulous intermediaries and submit wrong claims in their ITRs, which would be treated as cases of tax evasion. In the cases of such wrong claims by Government / PSU employees, reference would be made to the concerned vigilance division for action under conduct rules.” “Department may also prosecute the intermediaries and abettors under relevant sections of the Income Tax Act and may refer such cases to other law enforcement agencies for appropriate action. Hence, the Department also advises all intermediaries to strictly confine their advice to taxpayers within the four corners of the Income Tax Act,” it said. The advsiory came in the backdrop of the investigation wing of the department, in January, unearthing a racket of extracting fraudulent tax refunds by employees of bellwether information technology companies based in Bengaluru, in alleged connivance with a tax advisor. The CBI recently registered a criminal case to probe this nexus. The tax filing season for salaried class taxpayers has just begun with the Central Board of Direct Taxes (CBDT), that frames a policy for the department, recently notifying the new ITRs.

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