Crime
Over 90,000 Salaried Individuals Wrongly Claimed Rs 1,000 Crore in Tax Benefits
New Delhi: The Income Tax Department has uncovered a massive irregularity involving nearly 90,000 salaried individuals from public sector undertakings and private sector companies, who collectively claimed Rs 1,070 crore in wrongful tax deductions as of December 31, 2024.
The discrepancies, revealed during a detailed investigation, involved incorrect claims under various sections of the Income Tax Act, including 80C, 80D, 80E, 80G, 80GGB, and 80GGC. According to sources familiar with the matter, a significant number of these taxpayers worked for the same companies, and their income tax returns (ITRs) showed a vast mismatch between deductions claimed and receipts filed.
“By the end of 2024, around 90,000 taxpayers have withdrawn incorrect claims totaling Rs 1,070 crore and have paid additional taxes to rectify the errors,” stated an official who requested anonymity.
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Employers Under Scrutiny
The department has identified a list of employers linked to these cases and plans to investigate further. Tax officials will reach out to employees suspected of making bogus claims to ensure compliance.
Focus on Voluntary Compliance
In a bid to promote voluntary compliance and minimize litigation, the Income Tax Department is conducting outreach programs targeting employers. Taxpayers have been encouraged to file updated returns and rectify errors within two years from the end of the relevant assessment year, as stipulated under the revised tax regulations.
Warning Against Misinformation
The department also issued a warning to taxpayers about unscrupulous elements who mislead individuals into filing incorrect deductions. Taxpayers are advised to exercise caution and seek proper guidance when preparing their returns.
This discovery underscores the importance of ensuring accuracy and honesty in tax filings to avoid penalties and legal consequences.
