ITR Refunds: Difficulties are going to increase for those who get tax refund by showing fake donations. The Income Tax Department has taken a tough stance and started strict investigation against such taxpayers who try to get refunds by making false claims of making alleged donations to political parties or various organizations while filing Income Tax Returns (ITR). The department says that now such cases are being closely monitored and strict action will be taken against those found guilty.
According to Income Tax officials, in recent times a large number of such cases have come to light in which taxpayers have claimed to donate to any political party or charitable organization, but during investigation these claims were found to be suspicious or completely fake. In many cases, it has also come to light that instead of giving the donation directly to the concerned organization, it was shown through an intermediary or agent, so that more refund could be claimed by taking tax exemption.
Now the Intax Department will wield power!
The Income Tax Department has issued this warning at a time when there is a delay in processing the refunds of many taxpayers. Officials have clarified that a major reason for the delay in refund is that now the claims made in the returns are being thoroughly investigated. Especially those cases are being investigated where the claims of tax exemption and refund are unusually high.
During the investigation, the department got information about a whole network of agents and middlemen who provide fake documents to taxpayers in exchange for commission. These agents assure the taxpayers that by filing returns through them, the tax will be very less and the refund will be more. For this, fake donation receipts, documents of donations in the name of unrecognized political parties and in some cases, receipts of fake charitable trusts were used.
Strict strictness of Income Tax Department
The Income Tax Department has made it clear that not only will the refund be stopped against those making such fake claims, but penalty, interest and legal action can also be taken in serious cases. The department says that under the Income Tax Act, availing tax exemption by giving false information is considered a serious crime.
The department has appealed to honest taxpayers to claim tax exemption only on genuine and valid donations and not to fall prey to any agent or middleman. Besides, taxpayers have also been advised to check all the documents properly before filing the return, so that any kind of problem can be avoided in future.
Overall, this step of the Income Tax Department is being considered as a big and strict message towards increasing transparency in the tax system and preventing loss of revenue through fake refunds.
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