The Income Tax Department has issued a stern warning to taxpayers who have claimed deductions in their Income Tax Returns (ITRs) for the fiscal year 2022-23 (Assessment Year 2023-24) without supporting documents.
According to IT spokesman, Those individuals, especially from the salaried class, who have sought refunds for Tax Deducted at Source (TDS) without valid documentation may face severe consequences, including a penalty of 200 percent.
He said, the department is closely monitoring taxpayers, particularly employees of government departments, paramilitary forces, and the armed forces, who have allegedly made fraudulent claims for exemptions and deductions over the past few years.
Last year, upon detecting this practice, the Jammu & Kashmir Income Tax Department adopted a lenient approach, organizing outreach programs and awareness campaigns to educate the public about the repercussions of filing misleading ITRs.
Despite these efforts, some salaried employees continue to engage in dubious practices, including submitting fake rent receipts, ineligible claims on home loans, false donations, and other deceptive tactics.
The department has taken decisive action by issuing notices under section 133(6) of the Income Tax Act to erring employees based on comprehensive data for FY 2019-20, 2020-21, and 2022-23. The move aims to rectify these discrepancies and emphasizes the importance of accurate and honest reporting to avoid penalties and legal consequences.
Taxpayers are urged to comply with tax regulations to ensure the integrity of the taxation system.
