Salaried taxpayers warned against filing wrong claims

Tribune News Service

New Delhi, April 18

The Income Tax Department has warned salaried taxpayers not to fall prey to false promises or mis-advice by unscrupulous intermediaries and submit wrong claims in their income tax returns (ITRs).

In an advisory issued on Wednesday, the Central Processing Centre (CPC) of the I-T Department, Bengaluru, said such cases would be treated as cases of tax evasion.

In the cases of such wrong claims by government or public sector employees, reference would be made to the vigilance division concerned for action under conduct rules.

The cautionary advisory has been issued following recent reports of tax evasion by under-reporting income or inflating deductions and exemptions by salaried taxpayers.

“In this connection, the attempt by salaried taxpayers to under-report income or inflate deductions aided and abetted by unscrupulous intermediaries has been noted with concern. Such offences are punishable under various penal and prosecution provisions of the Income Tax Act”, the Department said.

The Department has warned that it 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 warned chartered accountants.

The I-T Department has an extensive risk analysis system aimed at identifying persons who are non-compliant and aim to subvert the trust-based system envisioned while processing of ITRs at CPC, Bengaluru.

“In all such cases of high risk, the Department may examine and verify the details submitted by taxpayers in their ITR, subsequent to processing of returns in CPC. If the Department notices any fraudulent claims in the returns, such taxpayers may be punishable under various provisions of the Income Tax Act”, the Department has warned.