Bogus income tax refund claims includes those claims which are made by individuals or entities submitting false or inflated claims to receive refunds they are not entitled to.
For Bogus income tax refund claims you may receive a below mentioned notice:
| Notice under sub section (6) Section 133 of the Income Tax Act, 1961 Sir/Madam/M/s. Sub : Calling for information under section 133(6) of the Income Tax Act, 1961 relevant for Assessment Year 2022-23 and A.Y. 2023-24. Ref : (i) Return of Income filed by you for the A.Y. 2022-23 and A.Y. 2023-24. (ii) Pr. CIT’s approval DIN & Letter No. xxxxxxxxxxxxxxxxxxxxx Please refer to the above. It is seen that you have filed a return of income for the A.Y. 2022-23 and A.Y. 2023-24 wherein you have claimed / received refund of xxxxxxxxxxxxxxxxxxxxxx respectively, after claiming various exemptions under section 10/section24b/deduction under chapter VIA such as 80C, 80D, 80DD, 80DDB, 80U etc. In exercise of the power vested in sub-section (6) of section 133 of the Income Tax Act 1961, the following information and evidence is called for from you. a. Evidence in support of the deductions/ exemptions claimed under different section / sub-sections of the I.T. Act, 1961, in the Income Tax Return filed by you for the above A.Y.(s). b. Form 16 issued by the employer/DDO concerned. c. Copy of Form No. 12BB, submitted by you to the DDO/ Employer, in compliance with Section 192 of the IT Act 1961, read with rule 26C of the Income Tax Rules, 1962……… |
How Department Track Fact ITR Deductions?
Department using the smart AI Enabled Software to track all the return data.
Even after filing ITR if you claim more than 50% TDS refund or high amount of TDS refund then they will send you Risk management Email for the confirmation.
Key Points to Note
Documentary Evidence
You need to provide proof for any claims made in your tax return. The Income Tax Department may issue notice u/s 148 if failure to do so.
Penalties
A penalty of up to 200% of the tax due may be imposed. In addition, prosecution under Section 276CC can lead to imprisonment.
Additional Penalty
If you do not respond within 10 days, a penalty of Rs 500 per day will be levied.
Option to File ITR-U
If you don not have proof, you can file an updated return (ITR-U) to correct your income and details. You will be required to pay any additional tax, interest, or penalty, and submit your response to the notice under Section 133(6).
Bogus refund claims undermine the tax system and can lead to severe penalties.
It is very crucial for taxpayers to file accurate returns and ensure all claims are legitimate to avoid legal repercussions.