Income Tax Department Cracks Down on Bogus Refund Claims, Sends Notices to Taxpayers

Last updated: 13 November 2024


The Income Tax Department has intensified scrutiny on dubious tax refund claims for the assessment years 2021-22 and 2022-23, issuing notices to multiple taxpayers across the country. The department has flagged a rising number of suspicious refund claims, especially those filed by individuals promising disproportionately large refunds through potentially deceptive practices.

Income Tax Department Cracks Down on Bogus Refund Claims, Sends Notices to Taxpayers

According to sources, the department's current focus includes tax refund claims involving exaggerated expenses, and unsubstantiated disability and medical claims. High-profile cases have emerged in urban centers like Gurugram, Ghaziabad, Mumbai, and Bengaluru, where refund claims from some taxpayers show inflated deductions. In particular, Chartered Accountants (CAs) and tax agencies have come under scrutiny, as several claims originate from single entities or networks allegedly encouraging inflated refund applications.

Officials have indicated that strict action is likely against CAs and tax consultants found to have misled taxpayers into pursuing unwarranted tax benefits. The crackdown aims to curtail fraudulent refund practices and maintain taxpayer integrity.

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Category Income Tax   Report

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