 "Income tax")
A large number of government and tech company employees in Andhra Pradesh have claimed incorrect tax deductions and exemptions, the Income Tax department on Friday said. However, erring tax payers have been given a chance to file the correct returns.
As part of their investigation, the tax officials conducted field inquiries and came to know that gullible employees were lured to claim wrongful refunds by intermediaries and peers.
"Many of the assesees work in government departments, PSUs and prestigious IT companies. It is also noticed that a large number of such taxpayers work with companies based outside Andhra Pradesh and Telangana but have PAN based in Andhra Pradesh/Telangana," said a statement issued here on Friday.
The Income Tax department's surveys on consultants and intermediaries revealed incriminating evidence on these fraudulent practices. Many of them have admitted to claiming bogus deductions and getting substantial refunds for their clients (employees and others) for commission, the statement added.
A good number of these claims have amounted to tax refunds as high as 75 per cent to 90 per cent of the Tax Deducted at Source (TDS) by the employer.
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According to the Income Tax Act, 1961, misreporting income and claiming wrongful deductions will attract stringent actions such as a penalty of 200 per cent, prosecution which can also lead to imprisonment and others.
The tax officials have seized the records containing the names of the employees and clients who indulged in these malpractices.
The department has given a lifeline to file updated returns under Section 139 (8A) for the assessment years (AY) 2021-22 and 2022-23 to pay the taxes due under Section 140 B, including allowing revised returns filing for AY 2023-24 in case original return has already been filed.
Considering the gravity of the matter, the department urged all tax payers in the state to reconsider their claims and expeditiously file the correct revised returns, the statement said.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
