• Notification Date: 17-01-2025
• Notification No: N/A

Income Tax Department recovers Rs 1,070 crore from wrongful claims

The Income Tax Department has brought back Rs 1,070 crore from nearly 90,000 taxpayers who made wrongful claims under various sections like 80C, 80D, 80E, 80G, and 80GGC. These, it was found to be wrong on verification, though they had saved tax.

The taxpayers had filed updated income tax returns for the financial years 2023 to 2025, rectifying their previous errors. These deductions included investment, medical, educational loan, and donations to political parties or charities. Most of the affected taxpayers were employees of public sector companies such as ONGC and BHEL, as well as multinational firms like Amazon and Accenture. However, the companies themselves were not the culprits; it was discovered that most of the employees had been cheated into making false claims.

The Income Tax Department has been educating employers and taxpayers extensively on the need to file accurate returns. The government actually promotes voluntary correction of mistakes by taxpayers by submitting corrected returns within two years from the relevant assessment year in order not to attract penalties.

Tax experts clarify that those who miscalculated or made incorrect deductions can file the corrected returns free of charge; however, these will incur the differential tax along with interest on top. To help taxpayers and guide them to comply with the tax laws, the department provides online resources to assist them through the process.

The departmental effort is intended to prevent improper use of tax benefits and fair tax practices.