File ITR correctly to avoid fines and jail time, says tax official
According to Mitali Madhusmita, principal chief commissioner of income tax in Andhra Pradesh and Telangana, under the Income-tax Act, 1961, there are severe consequences for misreporting income and making false deductions
- Jul 8, 2023,
- Updated Jul 9, 2023 9:44 AM IST
The income tax return (ITR) season for the financial year 2022-23 is currently underway, with a deadline of July 31. While it is crucial for taxpayers to provide accurate information in their ITR, the government has issued warnings regarding the misreporting of income and wrongful deductions. Failure to comply with the guidelines can lead to severe consequences, including penalties, interest, and even legal prosecution.
According to Mitali Madhusmita, principal chief commissioner of income tax in Andhra Pradesh and Telangana, under the Income-tax Act, 1961, there are severe consequences for misreporting income and making false deductions. These consequences include an annual interest rate of 12 per cent, a penalty amounting to 200 per cent of the taxes owed, and potential legal prosecution, which could result in imprisonment.
Taxpayers who have already made such claims or received wrongful refunds can rectify the situation by filing Updated Returns u/s 139(8A) for Assessment Year (AY) 2021-22 & AY 2022-23 and paying the due taxes as per Section 140B. For AY 2023-24, revised returns can be filed u/s 139(5) if the original return has already been filed.
Additionally, the government has intensified its efforts to combat fraudulent claims for tax refunds. Stringent measures are being implemented to identify and penalize individuals attempting to deceive the tax system in this manner. Taxpayers are advised to exercise caution and ensure the accuracy of their claims to avoid potential legal repercussions.
With just 25 days remaining until the ITR deadline for AY 2023-24, taxpayers are strongly advised to file their returns promptly to avoid any last-minute rush or potential penalties. It is essential to be aware of the different income tax forms available, as each form corresponds to a specific type of tax filer. Choosing the appropriate form will help in avoiding any income tax notices in the future. Individuals with only salary income can file their returns using ITR-1, while those with additional sources of income need to select the appropriate form that aligns with their circumstances.
To successfully file the income tax return, taxpayers need to provide various documents. These documents may include the PAN card, Aadhaar card, Form 16, Form 16A, 16B, 16C, bank statements, Form 26AS, investment proofs, rent agreement, sale deed, and dividend warrants. Form 26AS, which can be downloaded from the income tax portal, is particularly important as it serves as an annual tax statement, providing a comprehensive overview of taxes deposited and deducted by the government against the taxpayer's PAN.
The income tax return (ITR) season for the financial year 2022-23 is currently underway, with a deadline of July 31. While it is crucial for taxpayers to provide accurate information in their ITR, the government has issued warnings regarding the misreporting of income and wrongful deductions. Failure to comply with the guidelines can lead to severe consequences, including penalties, interest, and even legal prosecution.
According to Mitali Madhusmita, principal chief commissioner of income tax in Andhra Pradesh and Telangana, under the Income-tax Act, 1961, there are severe consequences for misreporting income and making false deductions. These consequences include an annual interest rate of 12 per cent, a penalty amounting to 200 per cent of the taxes owed, and potential legal prosecution, which could result in imprisonment.
Taxpayers who have already made such claims or received wrongful refunds can rectify the situation by filing Updated Returns u/s 139(8A) for Assessment Year (AY) 2021-22 & AY 2022-23 and paying the due taxes as per Section 140B. For AY 2023-24, revised returns can be filed u/s 139(5) if the original return has already been filed.
Additionally, the government has intensified its efforts to combat fraudulent claims for tax refunds. Stringent measures are being implemented to identify and penalize individuals attempting to deceive the tax system in this manner. Taxpayers are advised to exercise caution and ensure the accuracy of their claims to avoid potential legal repercussions.
With just 25 days remaining until the ITR deadline for AY 2023-24, taxpayers are strongly advised to file their returns promptly to avoid any last-minute rush or potential penalties. It is essential to be aware of the different income tax forms available, as each form corresponds to a specific type of tax filer. Choosing the appropriate form will help in avoiding any income tax notices in the future. Individuals with only salary income can file their returns using ITR-1, while those with additional sources of income need to select the appropriate form that aligns with their circumstances.
To successfully file the income tax return, taxpayers need to provide various documents. These documents may include the PAN card, Aadhaar card, Form 16, Form 16A, 16B, 16C, bank statements, Form 26AS, investment proofs, rent agreement, sale deed, and dividend warrants. Form 26AS, which can be downloaded from the income tax portal, is particularly important as it serves as an annual tax statement, providing a comprehensive overview of taxes deposited and deducted by the government against the taxpayer's PAN.