Filing I-T returns? Keep it real or face consequences

Principal Chief Commissioner of Income Tax, Telangana and Andhra Pradesh, Mitali Madhusmita said monitoring of the returns filed has revealed several taxpayers having claimed refunds as high as 75 per cent to 90 per cent of the TDS deducted by the employer

Hyderabad: Scores of salaried taxpayers who indulged in malpractices in tax payment with bogus deductions/exemptions and claimed refunds, now face the prospect of huge penalties and also possible imprisonment.

Speaking to presspersons here on Friday, Principal Chief Commissioner of Income Tax, Telangana and Andhra Pradesh, Mitali Madhusmita said monitoring of the returns filed has revealed several taxpayers working in the government departments, public sector undertakings, and reputed IT companies, having claimed refunds as high as 75 per cent to 90 per cent of the TDS deducted by the employer.

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“This triggered suspicions and based on the data analysis, we have noticed that refunds in Telangana and Andhra Pradesh had gone up from 37 per cent in 2021-22 to 84 per cent in 2022-23,” she said.

According to I-T officials who conducted field enquiries, employees were getting lured into such wrongful refunds on the advice of intermediaries/peers, without realizing the consequences thereof. They also observed certain malpractices by the I-T consultants.

“On examining, the consultants admitted they enabled employees to file the returns and get consequent refunds,” she said, adding that names of such taxpayers found in their documents have been impounded.

“Several employees admitted to have gotten wrongful refunds,” Madhusmita said, adding that they already filed updated returns and withdrew their refund claims.

The department would initiate stern action against taxpayers indulging in malpractices including levying interest of 12 per cent per annum, penalty of 200 per cent of the taxes and prosecution, which may entail imprisonment, if they failed to update the returns.

She urged all such taxpayers to reconsider their claim of deductions and exemptions made in the returns filed for AY 2023-24, 2022-23 and 2021-22 and expeditiously file updated/ revised returns if claims made by them were unsubstantiated.

For any query/assistance, taxpayers can contact Aayakar Seva Kendras in the local I-T offices, visit www.incometaxindia.gov.in call helpline number 18001030025/18004190025.