Irregularities in Providing Tax Concession
Exemptions and tax concessions under the Income-tax Act, 1961 (‘Act’) are provided in accordance with the provisions of the Act. However, any exemption or tax concession wrongly claimed in the returns of income filed by the tax payers are liable to be detected during processing of such returns or their scrutiny.
The monitoring mechanism prevalent for detection of such cases as of now includes system of Audit (both Internal and C&AG) and inspections/reviews done by supervising authorities. No such data is maintained for the number of cases arising therefrom and action taken theron and the outcome therefrom in a centralized manner.
This information was given by the Union Minister of Finance, Shri Arun Jaitley in written reply to a question in Lok Sabha today.
This is expected! With the use of PAN and interlinking process helps IT to detect and react to any inconsistancies.