The season for filing tax returns for the salaried class is here. The Central Board of Direct Taxes (CBDT) has recently notified the new ITRs as well.
The Income Tax department has also issued a warning to taxpayers in the salaried class against using illegal means such as inflating deductions or reporting income as being lower when filing tax returns. The department mentioned that violators will be prosecuted. Additionally, employers of the violators will be asked to take action.
The Central Processing Centre (CPC) of the I-T department, situated in Bangalore, is responsible for receiving and processing the Income Tax Returns (ITRs) of assessees. CPC has also issued an advisory stating that taxpayers should be extra cautious and stay away from unscrupulous tax planners who assist them in preparing inaccurate claims for tax benefits. The I-T department said that the illegal attempts to evade tax aided by unscrupulous intermediaries are punishable under the Income Tax Act.
The advisory was based on a racket that was unearthed by the department in January, wherein employees of information technology companies were found to be getting fraudulent tax refunds with assistance from a tax advisor. The CBI has recently registered a case for further investigations into the racket.
The advisory from the I-T department also mentioned that it does extensive risk analysis to identify people who do not comply with the guidelines. Although the processing of ITRs at the CPC is automated, the department said that it may later verify the details that taxpayers submit while filing tax returns.
The notification also asked tax advisors to adhere to the regulations in the IT Act when providing advice to taxpayers. It mentioned that failure to do so will invite criminal prosecution through the Enforcement Directorate (ED) and the CBI.