The South Central Railway’s Vijayawada Division has received a significant communication from the Chief Commissioner of Income Tax, Vijayawada. The letter highlights a concerning issue regarding false income tax refund claims and exaggerated deductions/exemptions by salaried employees.
According to the Chief Commissioner’s letter, a considerable number of salaried employees have been misled into filing false income tax returns, inflating their refund claims by exaggerating deductions and exemptions. Some have even received refunds amounting to 75-90% of the TDS deducted by the Accounts Department. This discovery has raised suspicions, prompting field surveys to investigate these claims further.
The Income Tax Department emphasizes the importance of verifying the accuracy of deductions/exemptions claimed in the returns for specific assessment years. Employees are urged to rectify any incorrect claims promptly, even before the Income Tax Department issues official notices. The consequences of misreporting income by making wrongful deductions are severe, including interest on additional tax, a penalty of 200% on additional tax, and potential prosecution and imprisonment.
The IT Department also warns employees against falling prey to tax consultants or touts who may encourage them to file incorrect returns in the future. It is crucial for all concerned individuals to heed this warning and ensure the accuracy of their income tax filings.
Text of Railway letter to its employees is as follows:-
SOUTH CENTRAL RAILWAY
VIJAYAWADA DIVISION
Divisional Office,
Personnel Branch,
Vijayawada.
No. SCR/B/P. APO/G/BZA/Conf/2023 Dt.: 17.07.2023.
All Concerned
Sub: Wrong claims towards deductions/exemptions from Income Tax and excess claim of refunds.
Ref: Chief Commissioner of Income Tax/VJA’s Lr. No. Refunds/PCIT/VJA/ 2023-24, dt.14.07.23.
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Chief Commissioner of Income Tax, Vijayawada vide letter cited under reference addressed to DRM/BZA, has informed that Income Tax Department verifies the correctness of returns filed by the salaried employees, it was noticed that a large section of employees have been lured into claiming refund by filing false IT returns by exaggerating their claims of deductions/exemptions, duly claiming refunds as high as 75-90 of the TDS deducted by the Accounts Department.
Field surveys also reveals that employees have taken refunds based on deductions/exemptions claimed which appear to be suspicious/incorrect and the same are under verification by the Income Tax Department.
Further, the IT Department also advised to verify the correctness of the claims of the deductions/exemptions furnished in the returns for the assessment years 23-24, 22-23 & 21-22 and to file updated/revised returns to rectify the wrong claim i.e., well before notice being issued by the Income Tax Department to the employees.
Lastly, IT Department seriously mentioned that consequences of misreporting income by claiming wrongful deductions would entail interest on additional tax, penalty @ 200% of additional tax and in severe cases, prosecution and imprisonment of wrong doer will also be there.
IT Department further warned that employees not be lured by tax consultants/touts and not to claim wrong deductions, in the returns being filed in future.
MODI SARKAAR MUST IMMEDIATELY BRING STRICT LAWS TO DISCOURAGE, STOP CITIZEN S TO FILE FALSE, FAKE INVOICES, ETC., BY SENTENCING THEM LONG JAIL TERMS, SEIZING OF THEIR. ASSETS, SUSPENSION OF LICENCES, BLACKLISTING THEM, AND ANYOTHER LONG TERM PUNISHMENTS.
GOVERNMENT GETTING STRICT IN DEALING WITH THESE FRAUDSTERS WILL BECOME A THING OF THE PAST
ANOTHER AREA IS ALL GOVERNMENT EMPLOYEES, WHO HARDLY DO ANY WORK, AND GET RAISES EVERY YEAR. ALL THESE MUST BE LINKED TO THEIR WORK PERFORMANCES, AND MUST BE STRICTLY DISCIPLINED. AT PRESENT NO ONE’IS HELD RESPONSIBLE FOR SHOFFY WORK, MISTAKES, ERC.
MODI SARKAR MUST BRING IN STRICT LAW’S OR PRIVATIZE ALL GOVERNMENT DEPARTMENTS TO GET RID OF RAMPANT CORRUPTION.
THEY ARE RUNNING A PRIVATE BUSINESS AT GOVERNMENT TIME AND USING GOVERNMENT ESTABLISHMENTS, NO EXPENSES, ONLY PROFITS AND GET PAID FOR NOT DOING ANY WORK.