The recent Tax Refund Scam involving a bogus Chartered Accountant and several employees of reputed companies such as IBM, Vodafone, Saplabs, Biocon, Infosys, ICICI Bank, CISCO, Thomson Reuters has spooked the CBDT.
The employees had, on the advice of the bogus CA, filed nearly 1000 returns and made fradulent claims of refunds aggregating Rs. 18 crore.
The CPC has now issued an advisory stating that the Income Tax Department has an extensive risk analysis system aimed at identifying persons who are non-compliant and aim to subvert the trust based system envisioned while processing of ITRs at CPC Bangalore. In all such cases of high risk, the Department may examine and verify the details submitted by taxpayers in their ITR,subsequent to processing of returns in CPC.
It is warned in clear terms that if the Department notices any fraudulent claims in the returns, such tax payers may be punishable under various provisions of the Income Tax Act. This may also delay issuance of refunds in such cases.
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