Jammu and Kashmir police on Tuesday asked all Drawing and Disbursing Officers to direct all officials of the department to update their Income Tax Returns after complaints of bogus and fraudulent claims by some officers surfaced.
According to a circular, the police authorities have warned of action if the officials fail to update their ITR-U by March 31.
The circular reads during analyses by Income Tax Department to the refunds issued in (ITR) FY 2021-22 and 2022-23 in respect of the Income Tax Returns filed by the taxpayers of Jammu & Kashmir, it has been revealed that huge number of individual taxpayers, particularly those who derive income from salaries and which includes many police officers/officials have claimed excessive deductions and refunds under various sections of the Income Tax Act viz. 80C, 80D, 80D0, 80DDB, 80E8, 80E, 80EE, 80G, 80GGC etc. without actually being eligible for the same.
“The data of every individual tax payer has been analyzed by the Director General of Income Tax (Systems) and cases of fraudulent claims/bogus refunds have been selected for scrutiny from which fraudulent claims of deductions/refunds under the IT Act have come to light,” it reads.
It added Income Tax Department has a list of alt persons who have claimed excessive/bogus deductions and refunds on TDS made by their DD0s. It is a matter of grave concern that large number of employees belonging to JKP also figure in the list.
“Such cases of bogus refunds may lead to selection of their cases for scrutiny and recoveries with be made by IT Department besides levy of penalty under section 270A of the Income Tax, which would be 200% of the tax levied. The cases of such employees may also be taken up for prosecution under section 276C of the IT Act.”
It reads however, the Income Tax Act provides a limited window in the shape of ITR-U under section 139(8A) which provides that the taxpayers can update their returns of income by paying their actual due tax along with penalty which is @50% of additional tax + interest tor F.Y.2019-20 (A.Y.2020-21) and @25% for F.Y.?020-21 (A.Y.2021-22), if the ITR-U are filed before 3r.03.2023.
“Keeping in view the sensitivity and urgency of the matter, all the DDOs of J&K Police are enjoined to direct all the officers/officials under their charge to update their Income Tax Returns (ITR-U) on or before March 31, 2023, if they have claimed any bogus deductions and refunds failing which action under rules as mentioned above shall be taken against them by IT Department,” it reads.
