Srinagar, Dec 09: In a collaborative effort between the Income Tax Department, J&K, and the District Administration, Doda, an outreach program titled “Mulaqat 2.0” was conducted at the DC Office. The event aimed to raise tax awareness and caution the public about the consequences of erroneous claims in their Income Tax Returns (ITRs).
Chaired by M.P Singh, Principal Commissioner of Income Tax, J&K and Ladakh, the session saw the participation of various officers from the Income Tax Department, including Rahul Padha, M.L Dogra, Karamvir, and Ankit Dhaka.
Approximately 250 officials from government departments, local trade associations, and the business community attended the interactive session.
In an opening session, M.P Singh underlined the pivotal role taxes play in national development and infrastructure. He emphasised the imperative of honest tax payments for the greater good. Rahul Padha revealed a startling revelation about a large-scale bogus refund scam detected by the Income Tax Department in the previous year. “Government employees were found engaging in fraudulent practices by making false deductions in their ITRs, resulting in a substantial loss of revenue,” he said.
Padha further highlighted that many taxpayers are also lured by various touts/ unauthorized agents and tax practitioners who by charging 20-30% commission file their ITRs and claim bogus deductions and exemptions to get money deducted as tax back. He further emphasized that the Department is in possession of complete data of such touts as well as the salaried taxpayers who have been claiming fake deductions and the culprits won’t be spared.
On this issue of bogus deduction and refund, M.L Dogra, ITO, Udhampur warned about fraudulent claims, particularly in Doda, Kishtwar, and Bhaderwah, under various sections of the Income Tax Act. The department has issued notices under section 133(6) of the I.T Act to individuals making bogus deduction claims.
“Once the notice under section 133(6) is issued, the assesse has to furnish such evidence/documents regarding deductions claims made by them within 8-10 days, failing which penalty for non-compliance amounting to Rs. 10,000/- for each default will be levied and the case will be selected for scrutiny later and in case any deduction is found as wrong, penalty of 200% of the tax evaded will be levied in such cases,” Dogra said.
In the past also, the Income Tax Department, J&K had selected large number of cases of A.Y.2017-18 & 2019-20 under scrutiny and besides raising huge demands in cases of wrong deductions, also levied penalty under section 271(1)(c) equal to the tax. Moreover, those who were under impression that they will get relief in case of demands raised by the department against them from appeal forums were reprimanded and additions in their cases were confirmed as well.
Rahul Padha disclosed a large-scale bogus refund scam detected by the Income Tax Department last year, involving government employees making false deductions in their ITRs. This malpractice resulted in a significant loss of revenue for the department.
To address tax recovery from defaulters, Ankit Dhaka, Tax Recovery Officer, Srinagar, informed the audience about attaching salary accounts and planning prosecutions. He advised those with fake deduction claims in their ITRs for F.Y. 2022-23 to revise their returns before December 30, 2023.
Karamvir, Income Tax Officer, TDS, highlighted TDS provisions for government officials and trade associations. DDOs were urged to grant eligible deductions cautiously, file TDS returns on time, and avoid last-minute tax deductions at the end of the financial year.
Later, in the concluding session M.P Singh cautioned against fraudulent claims, citing the example of CBI prosecuting government employees in Kerala. He urged those who made mistakes to revise their ITRs promptly, emphasizing the potential penalties, imprisonment, and disciplinary proceedings for offenders.
