Underreporting Income Under ITR Can Be Dangerous, May Lead To Fine Or Even Jail: Tax Official

The ITR season for the financial year 2022-23 is going on, with the deadline being July 31. Though the income tax filers are expected to provide the correct information in the ITR, the government has also warned against misreporting of income and claiming wrongful deductions.

“Under the Income-tax Act, 1961, there are stringent consequences of misreporting of income and claiming wrongful deductions. Those include interest at 12 per cent a year, penalty at 200 per cent of taxes, prosecution which may entail imprisonment,” said Mitali Madhusmita, principal chief commissioner of income tax AP & Telangana, according to an official tweet.

She said those who have filed such claims and taken wrongful refunds from the Department can file Updated Returns u/s 139(8A) for AY 2021-22 & AY 2022-23 and deposit due taxes as per Section 140B.

“For AY 2023-24, Revised returns can be filed u/s 139(5) in those cases where original return has already been filed,” Madhusmita said.

The government is also tightening the noose on those claiming fake tax refunds.

There are just 25 days left to the ITR AY 2023-24 deadline. People are advised to file ITR to avoid the last-minute rush. There are around 7 income tax forms. Each form is different and is for a particular type of tax filer. You must know which form is appropriate for you, so that any income tax notice can be avoided in future. For those having only salary income, they can file it using ITR-1, while those having other sources of income need to use other forms to file ITR.

While filing the ITR, it is important to know the slab rates under both the regimes — new tax regime and old tax regime. Tax slabs are different under both the income tax regimes. Know the slabs will help you save taxes.

PAN card, Aadhaar card, Form 16, Form 16A, 16B, 16C, bank statement, Form 26AS, investment proofs, rent agreement, sale deed, and dividend warrants may be required to file the income tax return.

Form 26AS can be downloaded from the income tax portal. It is an annual tax statement like a tax passbook that has details of the taxes deposited and deducted with the government against your PAN.