In the last few days, the Department has been busy with a bunch of raids, search and seizure operations across various states in India. As a result of this massive operation, the tax department said that they found that many employees of MNCs, PSUs, and others fell for the promises of certain professionals who claimed they could get them bigger tax refunds in exchange for a commission.
While the situation might not seem very dangerous, especially if the falsely claimed tax deductions are minor, keep in mind that the law allows the court to even sentence you to jail.
In addition to the tax and interest, you could face a penalty of up to 200% of the tax payable on wrong claims under Section 270A for under-reporting income due to misreporting, and you may also be punishable with imprisonment for willful attempt to evade tax.
This is the point where you start to wonder if claiming false deductions to reduce your tax liability is really worth it. The answer is NO. Just to save a few thousand rupees, you could be risking imprisonment and facing penalties of up to 200%.
Keep reading to learn what the tax department has to say and how you can protect yourself if there is still time.
The biggest issue here in this situation is many taxpayers were completely unaware of any tax notices being sent against their PAN. The tax department said: “It has been observed that such ITR preparers often create temporary email IDs solely for filing bulk returns, which are later abandoned,...
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