Income Tax Department has issued notice; Action will be taken against whoever claims wrong refunds

Now, the Income Tax Department is targeting fake refund claims. According to people with knowledge 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 dishonest individuals.

NDTV Profit was told by people that the department has targeted chartered accountants and agencies promising big refunds-despite using fraudulent methods, they said a large number of refund claims are based on fake expenses, disability, and medical claims.

The notices have been issued for frauds committed in 2021-22 and 2022-23, which involve taxpayers from across the country, the people said. The income tax department has begun scrutinizing large refund claims with a fine comb after big cases came to light in cities such as Gurugram, Ghaziabad, Mumbai, and Bengaluru, said the people.