Income Tax Department scanning Salaried taxpayers ITR

Income Tax Department Scanning Salaried taxpayers ITR

Income Tax Department is scanning Salaried taxpayers ITR allowances and deductions which were used for claiming refunds because recently in Andhra Pradesh and Telengana, the Income Tax Department has discovered a scam involving an income tax refund. The scam cost 40 crores of rupees. The Income Tax return is filed claiming fraudulent exempt allowances (including Housing Loan interest, House Rent Allowance etc.) and various deductions under Chapter VIA (i.e. section 80C – insurance premium etc., 80D – Medical insurance, 80G – donations, 80CCD – Pension funds etc.).

Read Also: Save Tax and Get refund: here is how you can still save tax while filing ITR

There is no need to include documentation supporting the requested deductions or allowances when completing a return online. Additionally, the Salaried taxpayers ITR processing at CPC Bengaluru is not intended to examine the claimed deductions and allowances. Only when a Salaried taxpayers ITR is chosen for inspection, which happens in just 1% of all filed returns, is it examined.

Due to the above scam, the Income Tax Department has made the decision to investigate allowances and deductions, particularly those claimed by paid individuals, using calling information and/or supporting documentation.

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Additionally, the Department is requesting information from the tax advisors who submitted the income tax return of assessee. According to section 133(6) of the Income Tax Act of 1961, which permits Income Tax Officers to request information from any person, the information was requested. Under section 272A, there is a penalty of Rs 500 per day for not complying with the notification.

Although the tax consultant is under no obligation to evaluate or verify the client’s numerous claims, some safety measures should be implemented before the customer files a return of income.

Read Also: Income Tax Return: Disclosure of Assets while filing ITR

The client’s signature on the computation of income and taxation must expressly state that:

  • That the client’s income and taxes were calculated based on the information provided, and that the tax consultant only filed the return based on the calculations performed without validating the allowance and deduction claims.
  • That any errors in the client’s statements or inaccurate information provided for the income computation shall be the client’s own responsibility.
Read Also: ITR Filing: How to report Capital Gain loss in Income Tax
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