More than 90,000 Taxpayers Wrongly Claimed Deductions worth Rs.1,070 crores
It has come to light that approximately 90,000 salaried individuals, as of December 31, 2024, from both public sector undertakings and private companies, have made claims for tax deductions worth Rs.1,070 crore based on incorrect ITRs. This raises concerns over the authenticity of the tax system. This opens concerns over the very authenticity of the tax system Rs.1,070 crores as against the claims of the former based on wrong ITRs.
The misuse of provisions under various sections of the Income Tax Act found uncontrolled in the investigation which include section 80C, 80D, 80E, 80G, 80GGB, and 80GGC. A significant discrepancy was found between the claims of the deductions and the receipts as reported in the returns of the individuals. Many of the claimants were also found to be working within the same organizations, further increasing the concern about systemic malpractices.
The tax department has reported that taxpayers concerned have since paid additional taxes after withdrawing the wrongful claims. The outreach programs for employers are being strengthened in order to enhance voluntary compliance. Taxpayers are inspired to file updated returns and correct errors within two years from the end of the relevant assessment year.
The authorities have also identified a list of common employers suspected to be involved in these cases. They will contact the individuals and organizations involved and address the issue. In addition, the department has issued warnings about the corrupt entities that may misguide taxpayers into making such incorrect deductions.
The department called for taxpayers to be watchful and make sure their claims are consistent with actual expenditures and receipts, lest they be penalized or further scrutinized. This is a wake-up call for taxpayers to check twice before filing their returns and adhering strictly to compliance guidelines.
