Many salaried taxpayers are under the scanner of the Income Tax Department after filing ITR. He has been encouraged by some experts to increase the amount of tax deduction and refund.
If people had filed ITR by the due date 31 July 2023, then they would not have to pay any extra fees. However, now if a person files income tax return from August 1, 2023, then he will be able to file income tax return till December 31, 2023. However, for this, that person may also have to pay late fees.
Late fee
On the other hand, those who will file income tax return by December 31, 2023, will have to pay late fees according to their income. If people’s income is not taxable then they will not have to pay late fees. On the other hand, if people’s income is taxable but less than 5 lakhs, then they will have to pay a late fee of Rs 1000. Apart from this, if the income of people is more than 5 lakh rupees annually, then such people will have to pay 5000 rupees at the time of late fees.
According to a report, many salaried taxpayers are under the scrutiny of the Income Tax Department after filing ITR. He has been encouraged by some experts to increase the amount of tax deduction and refund. These include fake rent receipts from close relatives, additional claims for home loans, fake donations and various unethical methods like tax evasion.
According to The Economic Times, earlier it was easy to evade the tax authorities, but now many may face difficulties as their returns are cleared by the software used by the revenue department. Which can get stuck in case of any doubt.
Income tax department sent notice
Tax authorities have sent notices to these taxpayers asking them to provide documents as proof for claiming tax exemption. These notices are given to the persons working on salary under the following sections –
- Exemption under house rent allowance under section 10(13A)
- Allowance under section 10(14) for hiring an assistant for carrying out official duties
- Deduction u/s 24(b) of the IT Act for interest paid on home loan
During this, reassessment can be done within a decade for Salaried Employees earning more than Rs 50 lakh. At the same time, reassessment can be done for eight years for persons with income less than Rs 50 lakh. Also, the digital record helps the Income Tax Department to match the data declared by political parties or charitable trusts in their returns with the donation details declared by individuals.
IT department keeping a close watch on the source
Rahul Garg, managing partner at tax and regulatory consultancy firm Asire Consulting, told Financial Daily that tax officials are profiling individuals based on information gathered through external sources, including ITR data as well as verification from filers, to check the authenticity of claims. The department has also asked taxpayers to disclose the name, address and contact numbers of chartered accountants, advocates or income tax professionals preparing and filing ITRs.
The Daily quoted Siddharth Banawat, partner of a CA firm, as saying that technology is being used in the right direction to detect tax evasion. Many people in the small tax bracket wonder who will look into the small value cases? So they claim deduction without making the correct payment.
