90 thousand wage earners withdrew 1070 crores from the Income Tax Department
New Delhi| Close to 90,000 salaried people in the government and private sector wrongly claimed tax deductions and withdrew Rs 1,070 crore from the Income Tax Department as of December 31, 2024. Government sources said, various persons have made this claim using different sections in the Income Tax Return (ITR). Due to this the tax received by the government is decreasing. However, later all of them have withdrawn the wrong claim and paid additional tax.
This information has come to light during various search and seizure and survey operations conducted by the Income Tax Department. During investigation it was revealed that such persons are employees of organizations working in various sectors including government companies, large corporations, multinational companies etc. Most of those claiming wrong deductions were working in the same company.
An analysis of the information in the Department’s possession revealed that there is a large mismatch between the total deductions claimed in the ITR by taxpayers. There is a huge difference between the total receipts shown by them in ITR. The deductions claimed under certain sections also appear to be doubtful. Ordinary employers have been identified and the tax department will reach out to as many people as possible who claim fraudulent deductions. According to the provisions of the Income Tax Act, 1961, taxpayers may file an updated return on payment of certain additional tax correcting errors within two years from the end of the relevant assessment year for assessment years 2022-23 to 2024-25.
