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Generally all the assessee/tax professionals are internet savvy to file income tax return online , but unknowingly they may be  commit cyber crime under Information Technology Act 2000

 1. Sending request to password change of any other person without authority:

If on the web portal of  Indian Income Tax Department request is found to be sent by any person without any consent from the assessee or authority to do so is not obtained as defined in u/s 4B of Information Technology Act 2000 .The assessee can file complaint under section 72 IT act 2000 against such person .

2. Quoting false address or email  for creating PAN ID in online data on behalf of assessee:

In general an assessee can make his own online ID quoting PAN , but  various business concerns /companies or non computer user’s hand over this work to accountants/clerks. Any entry with regard to address or email is filled wrong or with the intent to keep the assessee henpecked at later stage,which  is a cyber crime u/s 65 read with 71 of  IT Act 2000.

3. Registering PAN on income tax portal without the PAN holder’s consent:

It is again  an offence under section 65 of IT Act 2000. So after investigation U/s 78 of IT Act 2000 .Similarly if any professional / accountant found that he has access to all pan data of its client company employees or other clients and/or he voluntary  register PAN  without consent , while the PAN holder/'s wanted to file manual returns ,that kind of act is a crime of putting personal information on Internet server without consent . Though Chartered accountants / tax lawyers are exempt provided they obtain POA / consent to engage such professionals as defined under section 4B of IT Act 2000 as exceptions .

4.  Hacking password with false digital signatures:

It is an offence U/S 66 of IT Act 2000 , however the income tax portal has stopped to entertain password change requests by those with new emails i.e other than those who created the profile . Mostly Chartered accountants / tax lawyers & accountants now keep the passwords of assessees. The only way to change password is to obtain digital signatures. But few agencies/agents issue digital signs in hurry  in this competition world. However in Private limited / limited companies case or where the digital signs are mandatory one can not attach false digital sign.CA’s & other professionals are advised to obtain prior permission /POA from all Assessee for record to avoid any dispute in future.

5. Not disclosing  the password created for the Assessee:

It is right of the assessee to know the profile password & username ( PAN generally)from the person who created it with his own email. If that person refuses to give the password or he has no written permission to do so , then again such offender u/s 43 read with 44 of IT Act 2000 there is a  penalty .

6. Claiming false Income tax refunds:

Income tax refunds can not be claimed by making false entries in Online ITR in TDS column, so always analyse your 26 AS and try to update data from employer's/ contractor's recrods. Claiming refund without any relevance is punishable under Income Tax Act, as well as under information technology act  read section 65 of IT Act 2000.

7. Quoting bogus online bank Challan entry in self assessment paid tax column:

Sometime in hurry, just to complete the income tax return online or due to misplace of Challan entry details ,the assessee files return giving hypothetical Challan number /bank name . For which demand is raised by Income Tax Department .The department may  look into the matter and file complaint u/s 65 of  IT ACT 2000 aloong with other Income Tax Act provisitions .

8. No TDS deposit but deduction from taxpayer with fake online entries:

This kind of offence is played mostly by employers /contractors ie in transport or big overseas companies.They deduct the amount and thereafter issue the details /via accounts but later in online 26 AS form  the person from whom the TDS charged search online that there is no such entry . The employer can pretend a clerical mistake but the deductee can file case under Information Technology Act 2000 U/S 65 for missing such entries.

9. Filing Income tax return claiming false deductions for tax saving:

This is with context to Section 80C , HRA & other deductions normally an Individual assessee claim in online filing of return . The HRA deduction has now secured with a lie check for, the department is now demanding all details of the Renter(owner) of the house,his PAN etc is mandatory  to be given in online return , however in deductions of insurance other documents are still not demanded. If such act of assessee is found guilty , proceedings may be initiated against him/them.

10.  Bogus online complaints against assessee for personal grudges:

The Income Tax Department has its complaint  / whistleblowers wing ,where the personal details are said to be kept secretof the complainent who file online complaint regarding the illegal earninngs /incomes of somebody . But though people file false complaints out of some personal grudges. If such complainent  is searched  via Google search from an identifiable email afer Investigation such person can be punished u/s 67 InformationTechnology Act 2000.

Note – The above Cyber crime related information is for general knowledge only and may not be perfect ,however for details  expert guidance is suggested to all readers/CA/Tax Lawyers for more clarity

Writer: F.S Dhiman , Advocate /Chief Counsel FDC, India

Contact for more details


Published by

F.S Dhiman
(Chief- Counsel)
Category Taxpayers   Report

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