The Income Tax Department has issued a strong advisory to taxpayers, advising them against submitting income tax returns with inaccurate claims for exemptions and deductions.
The Income Tax Department has issued a strong advisory to taxpayers, advising them against submitting income tax returns with inaccurate claims for exemptions and deductions. Authorities emphasized the serious repercussions of such behavior, which may result in significant fines and the possibility of imprisonment, according to CAclubindia.
The I-T Department, in partnership with the South Central Railway (SCR), hosted an ‘Outreach Awareness Programme’ in Vijayawada recently. The purpose of the event was to educate employees on the significance of precise tax filings, aiming to equip them with the necessary knowledge on tax compliance and to deter them from depending on intermediaries who could potentially file false claims on their behalf.
Key Takeaways:
1. Importance of self ITR Filing:
Narendra A. Patil, the Divisional Railway Manager (DRM) of Vijayawada, highlighted the dangers of relying on intermediaries for tax return filing. He warned that if these intermediaries provide incorrect information and submit false claims, taxpayers could face serious consequences.
Patil encouraged employees to take the time to educate themselves on tax regulations and file their returns on their own to steer clear of any possible legal complications.
2. Stringent Penalties for Fraudulent Claims:
The Joint Commissioner of Income Tax, N. Abhinaya, emphasized the program’s central message, which centered on enabling employees to adhere to tax regulations. She disclosed that in the fiscal years 2022-23 and 2023-24, numerous salaried workers had submitted inaccurate claims. Ms. Abhinaya cautioned that there would be serious repercussions for incorrect deductions. False claims would result in a 200% penalty and possible imprisonment.
3. Widespread Misconduct Identified:
The verification procedures conducted by the I-T Department in Andhra Pradesh and Telangana revealed multiple cases of inaccurate exemptions and deductions, resulting in significant refunds being falsely claimed. Consultants and intermediaries implicated in these fraudulent activities have been dealt with by the department.
Conclusion
The recent initiative by the Income Tax Department emphasizes the importance of accuracy and honesty in taxpayers’ filings. Adhering to tax laws can help individuals steer clear of harsh penalties and legal consequences. Keep yourself updated, file your returns accurately, and enjoy a hassle-free tax season, advises CAclubindia.
