ITR Mistakes That Could Lead to Big Trouble

ITR Mistakes: Filing Income Tax Returns (ITR) is an important responsibility for every salaried person. However many people are unknowingly or intentionally making wrong claims under the old tax regime to get extra refunds. The Income Tax Department has warned that this can lead to serious consequences.

ITR Mistakes:
Some employees are claiming fake deductions and exemptions even after their employer deducts Tax Deducted at Source (TDS). They do this by submitting false information in Form 12BB or not providing supporting documents. This can lead to penalties, legal action, and even jail time.

According to the Income Tax Department, wrong refund claims can result in:

– Case selection for scrutiny
– Rejection of the refund if proof is not provided
– A penalty of up to 200% under Section 270A
– Jail term of 6 months to 7 years for tax evasion above ₹25 lakh
– Jail term of 3 months to 2 years in other cases

To stop this kind of fraud, the department is using Artificial Intelligence (AI) and data analytics tools. These tools help in tracking suspicious refund claims and mismatches in income or deductions. The process has become smarter and stricter.

So, what should you do as a responsible taxpayer?

– Always file your ITR with accurate information
– Claim only those deductions and exemptions that you are eligible for
– Keep all related documents safely in case the department asks for proof
– Fill Form 12BB honestly if you are following the old tax regime

Making a false refund claim may seem like an easy way to get extra money, but it can lead to big trouble. It’s better to be safe, honest, and well-prepared when filing your tax return.

The Income Tax Department is closely watching and using smart technology to catch wrongdoers. So, stay alert and follow the rules to avoid penalties and legal problems.

Remember: Filing the correct ITR is not just about saving money, it’s about following the law and being a responsible citizen.

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