Income Tax: Today, 31st July, marks the final day for filing Income Tax Returns (ITRs) for individuals whose income is not subject to audit. This deadline encompasses all employed individuals. With nearly 6 crore ITRs filed before the deadline, the Income Tax Department has issued a stern warning against dishonest practices some taxpayers may resort to in an attempt to save on taxes.
Warning Against Fake Claims
The Income Tax Department has cautioned taxpayers that making fraudulent claims in their ITRs to evade taxes is not only illegal but also a punishable offense. Engaging in such practices can lead to delays in processing refunds and may result in fines and imprisonment.
Overstatement of Expenditure
One of the primary frauds identified by the department is the overstatement of expenditure. Taxpayers are inflating the amount spent on certain items, particularly on medicines and treatment, to claim higher tax exemptions. The department has warned that if such overstatements are discovered during an investigation, the taxpayers involved could face severe penalties.
Claiming Deductions Without Actual Spending
Another common fraud involves claiming deductions without incurring the actual expenditure. Some taxpayers have been found to declare fictitious expenses to gain tax exemptions. Such false claims can lead to intense scrutiny, delaying the taxpayer’s refund or ITR processing. Upon detection, the fraudulent taxpayer may face significant legal consequences.
Hiding Actual Income
The third type of fraud is hiding actual income. Some taxpayers attempt to conceal income from sources other than their salary to avoid paying taxes on that amount. When caught, these individuals not only have to pay the outstanding tax and a penalty but also face the possibility of imprisonment.
Moral and Legal Implications
The Income Tax Department emphasized that making false claims is both morally wrong and legally punishable. In addition to facing fines and imprisonment, those who submit fraudulent claims may experience delays in the processing of their income tax returns, which in turn delays any potential refunds.
Taxpayers are urged to be truthful and accurate in their ITR filings to avoid the legal ramifications and ensure timely processing of their returns. The department’s warning serves as a crucial reminder of the importance of integrity and compliance in tax filings.
Keep watching our YouTube Channel ‘DNP INDIA’. Also, please subscribe and follow us on FACEBOOK, INSTAGRAM, and TWITTER
