Income tax department targets bogus refund claims issues notices to taxpayers

The Income Tax Department has targeted fake refund claims. According to people aware of the matter, the Income Tax Department has issued notices to many taxpayers who have claimed wrong refunds.

People said that the department has expressed concern over the increasing number of suspicious tax returns and refund claims, especially from unscrupulous individuals.

The department has targeted chartered accountants and agencies that promise large refunds, often using fraudulent methods, people told NDTV Profit, adding that many refund claims involve bogus expenses, disability and medical claims.

Taxpayers from across the country are involved

The notices have been issued for frauds that took place in the years 2021-22 and 2022-23, involving taxpayers across the country, the people said. With major cases coming to light in cities such as Gurugram, Ghaziabad, Mumbai and Bengaluru, the income tax department is closely monitoring large tax refund claims, the people said.

Strict action is being taken against CA

Strict action is being taken against CAs and agencies which mislead taxpayers to claim wrong refunds.

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