Income Tax News: The Income Tax Department will systematically verify ‘high-risk’ refund claims for the assessment year 2024-25, covering the financial year ending March 31, 2024. This process will be conducted in accordance with a newly issued Standard Operating Procedure (SOP), aimed at ensuring accuracy and preventing fraudulent claims.
SOP Issued by I-T Systems Directorate
The directorate of I-T systems, a unit within the Ministry of Finance, has issued detailed SOP instructions for handling high-risk income tax refund cases. These instructions have been shared with assessing officers, TDS charge officers, and officials in the investigation wing. The goal is to streamline the verification process and reduce incidents of incorrect refund claims.
Tackling Fraudulent Refunds
In previous years, numerous incidents were reported where taxpayers had falsely claimed refunds through various methods such as incorrect reporting of TDS credits, underreporting of income, overstating deductions, or making bogus expense claims. The SOP aims to tackle such fraudulent activities by enforcing stricter checks on high-risk refund claims.
Collaboration Between Tax Officials
Assessing officers, TDS officials, and investigation wing teams will work together to scrutinize high-risk cases thoroughly. The collaboration will focus on ensuring that only legitimate refunds are processed, while fraudulent claims are identified and addressed promptly. This approach is expected to enhance transparency and maintain the integrity of the tax system.
The SOP serves as a crucial guideline for tax authorities, ensuring that the verification of refund claims is conducted with precision and in compliance with the law.
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