Slower tax refunds after ITR filing? IT dept detects false exemption claims of Rs 700cr

ITR filing FY 2024-25: The Income Tax Department is cracking down connected mendacious taxation exemptions being claimed by radical successful their Income Tax Returns. Most of these exemptions, nether the aged income taxation regime, are for individuals who gain implicit Rs 20 lakh.The taxation authorities person identified galore instances of mendacious exemption claims submitted by taxpayers, starring to enhanced hazard valuation procedures astatine the Central Processing Centre to halt incorrect refund disbursements, according to an ET report.The taxation authorization has implemented computerised verification systems to analyse taxpayers antecedently identified for filing inflated claims. The section has enhanced its utilisation of blase information investigation and AI technologies to observe inconsistencies successful income declarations by individuals.

ITR filing: What mendacious exemptions claims are being scrutinized?

The fraudulent exemption claims comprise fabricated aesculapian expenses and fictitious donations to governmental and spiritual entities, with a important information of these claims originating from taxpayers who opted for the aged taxation structure.Sources knowledgeable astir the substance told ET that the attempted taxation avoidance done these deceptive practices amounts to astir ₹700 crore.The processing of refunds mightiness acquisition delays, peculiarly for claims exceeding Rs 10 lakh, according to these sources.

"During the verification process, we detected that galore taxpayers, mostly with income supra Rs 20 lakh, were claiming wrongful refunds done fake exemptions. Interestingly, astir of them were repetition offenders," a elder taxation authoritative was quoted arsenic saying.Tax officials person confirmed that notifications are being dispatched to taxpayers, enabling them to amend their returns.“This verification is taking further time, a crushed wherefore the refund process is slower compared to past year," the authoritative said, adding that the section is intimately monitoring the processing truthful that different pending income taxation returns are cleared astatine the earliest.According to caller data, the Income Tax Department's refund disbursements decreased by 24% to Rs 1.60 lakh crore arsenic of September 17, compared to Rs 2.10 lakh crore successful the erstwhile year.The section launched broad verification exercises crossed aggregate sites successful July, targeting those who were helping others record incorrect taxation deductions and exemptions successful their returns.Following a caller compliance run arsenic of June 18, taxpayers withdrew taxation deduction claims amounting to Rs 963 crore and submitted further taxes of Rs 409.50 crore. Additionally, 30,161 taxpayers disclosed overseas assets valued astatine Rs 29,208 crore and overseas income totalling Rs 1,089 crore.