Hereafter the warning given to salaried taxpayers by Income Tax Department, it is significant to know 8 common inaccuracies of income tax. Are you a salaried person, usually conceal a part of the income from IT department in a bid to save tax? Then you have more reasons to be concerned as the IT department has warned the salaried class against using illegal means while filing IT returns. IT department officials said that such violators will not just be prosecuted, but, also the employers will be asked to take some strict action against them.
Here are 8 common inaccuracies you need to know about:
Non-reporting of interest income from savings / fixed deposits account
Now these amounts will be directly mapped from the individual’s bank account statement and form 26AS
Fake bills submitted for HRA claims
Such frauds would now be a matter of punishment under the provisions of the Income Tax Act
Claiming fake 80C deductions
Earlier employees claim fake 80C deductions such as Mediclaim deductions, LIC bills, etc. raising the value of appropriate fixed deposits without genuine outflow of such investments.
Not considering income derived from all employers
Employees switching their jobs ensure that they consider the income from all the previous employers while filing the IT return.
Claiming fake deduction under chapter VI-A
Some tax professionals try to lure the taxpayers by promising great returns, for which they charge 10 to 25% of their return amount.
Making fake claims under Section 10
Since last year the IT department has started tallying the data filed in income tax return with the income of taxpayer as reported in form 16, form 16A, and form 26AS.
Inflating claim of home loan interest
Be careful while falsely inflating the home loan interest as you will be asked to submit the proof online and if it is found false, then the IT return claim will be rejected and the penal can take strict action against the taxpayer.
Making false claims on capital gains
The revised ITR form requires to submit the details of the investment made under the sections 54, 54F, 54EC, etc.