The Income Tax Department has warned salaried class taxpayers against using illegal means like under-reporting of income or “inflating” deductions while filing their returns.
The violators will be prosecuted and their employers will be intimated to take action against them, the taxation office has cautioned.
The Central Processing Centre (CPC) of the department in Bengaluru, that receives and processes the Income Tax Returns (ITRs), has issued an advisory specifying such taxpayers should not “fall prey” to unscrupulous tax advisers or planners who help them in preparing wrong claims to get tax benefits, media reports said.
Calling it a “cautionary advisory” on reports of tax evasion by under-reporting of income or inflating deductions or exemptions by salaried taxpayers, the department was quoted as saying that such attempts “aided and abetted by unscrupulous intermediaries have been noted with concern”.
“Such offences are punishable under various penal and prosecution provisions of the Income Tax Act,” it reportedly said.
The advisory comes in the backdrop of the investigation wing of the department, in January, unearthing a racket of extracting fraudulent tax refunds by employees of bellwether information technology companies based in Bengaluru, in alleged connivance with a tax adviser, reported PTI.
The CBI recently registered a criminal case to probe this nexus.
The tax filing season for salaried class taxpayers has just begun with the Central Board of Direct Taxes (CBDT), that frames policy for the department, recently notifying the new ITRs, the report said.
The one-page advisory added that if the department notices any fraudulent claims in their ITRs, such claims “may be punishable under provisions of the IT Act and this may also delay issuance of their refunds”.
The advisory reportedly said that the department possesses an “extensive risk analysis system” that is aimed at identifying persons who are non-compliant and aim to subvert the trust based-system “envisioned” while processing of ITRs at the CPC, which it said is automated and devoid of any human interface.
