Approximately 90,000 taxpayers have voluntarily withdrawn incorrect deduction claims totaling around Rs 1,070 crores in their ITRs and have paid additional taxes, according to the sources. Under the provisions of Section 139(8A) of the Income Tax Act, 1961, taxpayers can file updated returns within two years from the end of the relevant assessment year to rectify errors of omission or commission.
Investigation of email clusters revealed that in most cases, clusters pertained to individuals who were working in some common organizations, said sources, adding that such organizations are in diverse fields including PSUs, Big Corporations, MNCs, LLPs, Private Limited Companies and even Government organizations and statutory bodies.
Field offices were requested to obtain list of common employers which have been identified during the course of investigation into e-mail based clusters from respective PDIT(Inv.) charges under the jurisdiction and to conduct outreach programmes, sensitizing employers regarding the wrong claims of deductions in the ITRs.
As per the sources, the investigation by CBDT has further revealed insights regarding. fraudulent claims of deductions in the ITRs. Analysis of the information with the department showed that there is a vast mismatch between total deductions u/s 80GGB/80GGC claimed by taxpayers in their ITRs as against the total receipts shown by the donees in their ITRs. Similarly, deductions claimed u/s 80C, 80E, 80G also appear to be suspicious in nature.
On the basis of analysis, a list of common employers (i.e., TDS deductors) has been identified. The list has been identified keeping into mind the objective of reaching out to as many persons as possible who are suspected to have claimed bogus deductions u/s 80E, 80G, 80GGA, 80GGC and other deductions to further promote voluntary tax compliance and minimize litigation, the Department is launching an intensified outreach program targeting employers to foster greater awareness and ensure adherence to tax laws, as per the sources.
Investigations reveal that the taxpayers involved include employees from Public Sector Undertakings (PSUs), major corporations, multinational companies (MNCs), limited liability partnerships (LLPs), and private limited companies. Furthermore, certain unscrupulous elements have been found to mislead taxpayers into making incorrect claims for deductions and refunds.
The Income Tax Department, during various search, seizure, and survey operations, has identified numerous instances of individuals claiming incorrect deductions under sections such as 80C, 80D, 80E, 80G, 80GGB, 80GGC, and others in their Income Tax Returns (ITRs).
These claims have significantly reduced the tax payable to the Government of India, a source told ANI. To address this issue, the Department has been conducting extensive outreach programs in collaboration with employers. These initiatives aim to raise awareness about the consequences of filing incorrect claims in ITRs and guide taxpayers on corrective measures to rectify such errors.
This facility is available for Assessment Years 2022-23 to 2024-25, subject to the payment of the prescribed additional tax. The sources said that during various search and seizure and survey operations, it has come to notice that various persons are claiming bogus deductions in their ITR leading to reduction of tax payable to the Government of India.
In response to these incidents observed, guidelines for verification by Investigation Directorates and SOP for verification by TDS and JAO charges were issued, sources stated.
