The Income Tax Department has issued a strong warning to taxpayers, advising against submitting inaccurate income tax returns with false claims for exemptions and deductions. Taxpayers are urged to be cautious as such behavior could lead to substantial fines and even imprisonment.
In collaboration with the South Central Railway (SCR), the Income Tax Department organized an ‘Outreach Awareness Programme’ in Vijayawada. The objective was to educate employees on the importance of accurate tax filings and to discourage reliance on intermediaries who may file misleading claims.
Here are the key points from the event:
1. Encouraging Self ITR Filing:
Narendra A. Patil, the Divisional Railway Manager (DRM) of Vijayawada, emphasized the risks of depending on intermediaries for tax return filing. He cautioned that incorrect information or false claims submitted by intermediaries could lead to severe consequences. Patil encouraged employees to understand tax regulations and file their returns independently to avoid potential legal issues.
2. Strict Penalties for Deceptive Claims:
N. Abhinaya, the Joint Commissioner of Income Tax, underscored the program’s focus on guiding employees to comply with tax regulations. She revealed that numerous salaried workers had made inaccurate claims in the fiscal years 2022-23 and 2023-24. Ms. Abhinaya warned of severe consequences for inaccurate deductions, including a 200% penalty and possible imprisonment.
3. Uncovering Widespread Misconduct:
The Income Tax Department’s verification procedures in Andhra Pradesh and Telangana revealed multiple instances of inaccurate exemptions and deductions, leading to substantial false refunds. The department has taken action against consultants and intermediaries involved in these fraudulent activities.