Srinagar, Mar 28: The Jammu and Kashmir police on Tuesday asked all Drawing and Disbursing Officers to direct all officials of the department to update their Income Tax Returns after complaints of bogus and fraudulent claims by some officers surfaced.
According to a circular issued on Tuesday, Jammu and Kashmir police have warned of action if the officials fail to update their ITR-U by March 31.
“During analyses by lncome Tax Department to the refunds issued in (lTR) FY 2021-22 and 2022-23 in respect of the Income Tax Returns filed by the taxpayers of Jammu & Kashmir, it has been revealed that huge number of individuaI taxpayers, particularly those who derive income from salaries and which includes many police officers, officials have claimed excessive deductions, refunds under various sections of the various income Tax Act without actually being eligible for the same,” it said.
The circular further reads that the data of every individual taxpayer has been analyzed by the Director General of lncome Tax (Systems) and cases of fraudulent claims/bogus refunds have been selected for scrutiny from which fraudulent claims of deductions/refunds under the l.T.Act have come to light.
“The income Tax Department has a list of alt persons who have claimed excessive/bogus deductions and refunds on TDS made by their DD0s. it is a matter of grave concern that large number of employees belonging to JKP also figure in the list such cases of bogus refunds may lead to selection of their cases for scrutiny and recoveries with be made by IT Department besides levy of penalty under section 270A of the income Tax which would be 200% of the tax levied.
The circular reads that the cases of such employees may also be taken up for prosecution under section 276C of the l.T.Act. However, the income Tax Act provides a limited window in the shape of ITR-U under section 139(8A) which provides that the taxpayers can update their returns of income by paying their actual due tax atong with penalty which is @50% of additional tax interest for F.Y.2019-20 (A.Y.2020-21) and @25% or F.Y 020-21 (A.Y.2021-22), if the ITR-U are filed before 03.03.2023.
“Keeping in view the sensitivity and urgency of the matter, all the DD0s of J&K Police are enjoined to direct at the officers/officiates under their charge to update their income Tax Returns (lTR-U) on or before March 31, 2023, if they have claimed any bogus deductions/refunds failing which action under rules as action will be taken against them by lT department,” it said.
Meanwhile, the government of Jammu and Kashmir UT has decided to go tough against the bogus income tax refund claims by some employees working under the administrative department of the Education Department.
With this regard, all the heads of the department have been directed to take action against the employees who have claimed the income tax refund with the help of fabricated documents.
Director Finance, School Education Department, Iftikhar Hussain Chauhan said that a meeting was conveyed by the Principal Commissioner, Income Tax which was attended by all the Drawing and Disbursing Officers (DDOs) of various institutions.
In the meeting, it was highlighted that a number of income tax refund claims of employees are utilizing the service of some tax professional wherein a number of income tax refund claims of employees has increased manifold in the last two years as the employees are utilizing the services of some tax professionals where TDS deducted from their salaries by ODO is refunded by using sections of income tax on the basis of fabricated documents
The order reads that the Income Tax Department has viewed the bogus refund claims and details of such employees who have claimed refunds has been prepared and intimated to the Chief Secretary to the government, Jammu and Kashmir.
Before forwarding the names of such employees to their respective departments, the government has given time relaxation till 31 March otherwise the employees will have to face serious consequences.
The order reads “However, it has been felt that before their names are forwarded to their respective departments time relaxation has been given to such claimants till 31-03-2023 that a rectified lTR as (ITR-U) may be filed otherwise it shall have some serious repercussions followed by Departmental inquiries and imposition of penalties U/S 270(A) and U/S 276 (C) of Income Tax Act 1961.”