Income Tax Department issues notice to taxpayers over bogus refund claims
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New Delhi: The Income Tax Department has issued notices to several taxpayers for claiming disproportionate refunds, NDTV reported.
It is reported citing sources that the swift move comes over concerns of rising number of suspicious tax returns and refund claims.
Many of the refund claims are made using bogus expenses, disability and medical claims.
Given this, the tax department is zeroing in on chartered accounts and agencies that promise large refunds at times using fraudulent means.
The notices have been issued for the assessment years 2021-22 and 2022-23 with major cases being reported in the cities including Gurugram, Ghaziabad, Mumbai, and Bengaluru.
It is also reported that the Income Tax Department alongside is particularly monitoring large refund claims especially those from a single CA or agency.
The strict action is reported to be taken against CAs and agencies for misguiding taxpayers into claiming incorrect refunds.