IT department warns salaried taxpayers not to under-report income
19 April 2018
The Income-Tax department has warned salaried class taxpayers not to under-report income or inflate deductions or exemptions and said such offences are punishable under various penal and prosecution laws.
The department issued ‘a cautionary advisory,’ urging salaried employees not to fall prey to unscrupulous intermediaries, some of who prepare wrong claims to get tax benefits.
The advisory said that if the department found any fraudulent claims in the ITRs of tax-payers, they could be punishable under the provisions of the IT Act.
Earlier this year, the investigation wing of the IT department had unearthed a racket of fraudulent tax refunds by employees of Bangalore-based IT companies, in connivance with a tax advisor.
The Central Bureau of Investigation registered a criminal case and is probing the case.
The new ITR forms for 2018-19 seek a breakup of the salary component and deductions, along with details about income earned from properties. Taxpayers also have to give details about allowances that are not exempt, value of perquisites and other details.
Salaried employees are a key segment of taxpayers in India. According to the IT department, the tax paid by an average salaried taxpayer topped Rs75,000 in assessment year 2016-17, as against just a third (around Rs25,000) by average individual business taxpayers.