WARNING TO SALARIED CLASS, I.T. IS ABOUT TO TAKE TOUGH ACTION ON SALARY CLASS

WARNING TO SALARIED CLASS:

INCOME TAX DEPARTMENT TO TAKE TOUGH ACTION FOR MANIPULATION AND UNDER REPORTING OF SALARY BY EMPLOYEES:

New Delhi: The Income Tax department has issued a warning to salaried taxpayers working in organisations across India, stating that it would take a tough stance against those under-reporting income or increasing the margin of deductions/exemptions. Saying that such incidents are punishable under the Income Tax Act, the IT department has issued a page-long advisory to caution salaried taxpayers. It should be noted that that advisory was floated days after employees of some top organisations fraudulently inflated deductions and exemption, thus claiming higher returns.

Reiterating the warning, the I-T department said, “The attempt by salaried taxpayers to under-report income or inflate deductions aided and abetted by unscrupulous intermediaries has been noted with concern. Such offences are punishable under various penal and prosecution provisions of the Income Tax Act.” It went on to say that the processing of Income Tax Returns (ITRs) by CPC-Bangalore is done in an “automated rule-based manner” to ensure complete transparency. The department added that the CPC Bangalore is a just a back office and that there is no chance of human interference in the process. It said that there is an “extensive” risk analysis system in place, aimed at identifying persons who are “non-complaint and aim to subvert the trust-based system envisioned while processing of ITRs at CPC Bangalore”.

IT IS IN THE INTEREST OF SALARIED TAXPAYERS AND PROFESSIONALS ADVISING TO AVOID TAX EVASION AND ONLY FOCUS ON TAX PLANNING.

Compiled by: Ca Anil Agrawal Jabalpur