The Income Tax department has issued warning for salaried class taxpayers against using unfair means while filing their income tax returns. The illegal means include under-reporting of income, or inflating deductions etc. The consequences may lead to prosecution as well if anyone is found resorting to such means. The IT department may ask your employers as well to take action against you.

The taxpayers are advised not to come under the influence of tax advisors or planners who give advice or assist in preparing wrong claims. Due to the reports of tax evasion by salaried taxpayers this year, such advisory has been issued.

During the month of January this year, a racket was exposed which operated in alleged connivance with a tax advisor to claim fraudulent tax refunds for employees of some of the top Bengaluru-based IT companies including IBM, Vodafone and Infosys. On January 24, IT department’s investigation wing had claimed that they had “seized” bogus claim documents of several clients, including their Whatsapp messages, during a raid on the premises of an unidentified tax advisor.

The department has also asked tax advisors to confine their suggestion to clients within the ambit of the IT Act.

The list of false claims made in ITR falls under the following categories:

1. Non-reporting of interest income from savings / fixed deposits account:
2. Fake bills submitted for HRA claims
3. Claiming false 80C deductions.
4. Not considering income derived from all employers
5. Claiming false deduction under chapter VI-A.
6. Making false claims under Section 10
7. Inflating claim of home loan interest.
8. Making false claims on capital gains.

For any queries/clarification you may contact

CA. Bharat Poplani