Taxpayers urged not to claim fraudulent returns, file revisions in case of wrong claims made

Hyderabad, July 7, 2023 

Penalty for tax malpractise can attract penalty and also imprisonment, says Principal Chief Commissioner of Income Tax (A.P. & TS) Mitali Madhusmita

The Income Tax Department (Telangana and Andhra Pradesh) as part of its monitoring exercise to check correctness of returns filed by taxpayers has found that a large number of assessees have filed exemptions and deductions incorrectly and claimed refunds based on such declarations.

“Many of them work in government department, PSUs and prestigious companies. It is also noticed that a large number of them work with companies outside the State, but have their PAN based in A.P. and Telangana. They have claimed refunds of as high as 75%-90% of TDS deducted by the employer,” an official release from the Income Tax Department stated on Friday.

Addressing presspersons here, Principal Chief Commissioner of Income Tax (Andhra Pradesh & Telangana) Mitali Madhusmita said field enquiries showed “a trend”, of gullible employees getting lured by intermediaries or peers for claiming wrongful refunds.

Returns filed with bogus deductions and exemptions resulted in refunds for clients, at some commission for the middleman. Questioning such clients then resulted in confessions of filing ineligible deductions and exemptions. While such taxpayers have now filed updated returns, action was initiated against consultants and intermediaries for tax malpractice, she said.

The consequences of misreporting income and claiming wrongful deductions, Ms. Madhusmita reiterated, attract interest at 12% per annum, penalty at 200% of the taxes and imprisonment.

She urged taxpayers in A.P. and Telangana to reconsider their claims for returns filed for assessment years 2023-24, 2022-23 and 2021-22 and file updated/revised returns, if claims already made are unsubstantiated.

More details can be had at the Aayakar Seva Kendras at local Income Tax offices or on helpline numbers 1800 103 0025 / 1800 419 0025.

[The Hindu]