‘Data of touts, taxpayers claiming fake deductions prepared’
Excelsior Correspondent
JAMMU, Dec 9: An outreach programme-cum-interactive session was organized by the Income Tax Department, J&K in collaboration with District Administration Doda at the DC office.
The session was a part of series of outreach programmes titled “Mulaqat 2.0” being conducted by the department all across the J&K to raise tax awareness among the public and to caution them of the repercussions of making wrong claims in their ITRs.
The event was chaired by M P Singh, Principal Commissioner of Income Tax, J&K and Ladakh along with other officers of the Income Tax Department including Rahul Padha (Joint Commissioner of Income Tax, Srinagar), M L Dogra (Income Tax Officer, Udhampur), Karamvir (Income Tax Officer, TDS Jammu & Srinagar) and Ankit Dhaka (Tax Recovery Officer, Srinagar).
Around 250 DDOs and employees of various Government departments along with people from local trade associations and business fraternity attended the interactive session.
M P Singh highlighted the importance of taxes in nation building and infrastructural development along with significance of paying taxes honestly. Subsequently, Rahul Padha apprised the audience that last year Income Tax Department detected a bogus refund scam of large magnitude wherein it was noticed that a significant number of Govt employees of almost all State departments/Police/ Paramilitary forces etc. were found indulged in claiming bogus deductions in the ITRs to get the most of TDS back as refunds. The malafide practice has led to the leakage of hard earned revenue of the department.
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 the issue of bogus deduction and refund, M L Dogra, ITO Udhampur further highlighted that the majority of claims of these bogus deductions in J&K have been detected in Doda, Kishtwar and Bhaderwah. These fraudulent deductions were claimed under various sections of Income Tax Act such as 10(13A) (House Rent Allowance), 80C (contribution in LIC/PF/ tuition fees etc.), 80CCD, 80D (Health Insurance), 80DD (Treatment of disability), 80DDB (Medical treatment), 80E (Education loan), 80EE/80EEA (Loan for house property), 80EEB (Deduction for purchase of Electric vehicle), 80G (Donations to Trusts, Charitable Institutions etc.), 80GGC (Donation to political parties) and 80U (Deduction in case of disability).
He further warned that the data regarding fraudulent claims has been processed and analyzed by the department and notices under Section 133(6) of the I.T Act are being issued to those who have made bogus deduction claims in their ITRs. Once the notice under Section 133(6) is issued, the assessee 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.
On the issue to tax recovery from the defaulters, Ankit Dhaka, Tax Recovery Officer, Srinagar apprised the audience that to recover the demands from these taxpayers, the department has also attached salary accounts in past three months for recovery of tax and penalty and now planning to launch prosecution in all these cases.
He emphasized that only way to avoid all this hassle, harassment and punitive actions for those who have made these fake deduction claims in their ITRs filed for Financial Year 2022-23 relevant to Assessment Year 2023-24 is to revise their ITRs before 30th December, 2023. Similarly, for those who knowingly or unknowing fell in this trap of making bogus deductions and claiming refund in earlier years were also advised to amend their mistake by filing Updated ITRs (ITR-U) for FY 2020-21 & 2021-22 by 31st March, 2024 by paying additional tax of 50% & 25% respectively in addition to their tax liability.
Since last year, the department has been regularly organizing special campaigns to sensitize the taxpayers to refrain from making wrong claims in their ITRs and revise/update their ITRs timely in case they had claimed bogus deductions. As a result, more than 10,000 employees accepted their mistakes and corrected their Income Tax Returns by filing ITR-U for F.Y. 2019-20 (Assessment Year 2020-21).
As DDOs of various Government departments and many representatives of trade associations of Doda district were present during the session, Karamvir, ITO, TDS made them aware about various provisions of TDS especially section 192 (TDS on Salary),194C (Payments to Contractors), 194H(Commission or Brokerage),194IA (TDS on payment on transfer of certain immovable properties), 194J (Fees for technical or professional services), 201 (Consequences of failure to deduct or ay taxes), 203(Certificate of tax deducted) etc.
While concluding the session, M P Singh urged and cautioned the audience to refrain from making these fraudulent claims and tax their taxes honestly as the department is keeping a strict vigil on such persons and they will have to face the wrath of department in form of hefty penalties and imprisonment as well.
He advised that those who have already made mistake must revise/ update their ITRs immediately without waiting for the deadline. He further stated that for a wrongly claimed refund of Rs 1lakh, the taxpayer may have to pay approximately Rs 4 lakhs as tax which includes penalty of Rs 2 lakhs @200% on wrongly claimed amount of Rs. 1 lakh and interest under Section 234A/B/C.
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