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Excess refund from department

PRIYA KUMARI RANJAN (Finance Officer) (34 Points)

27 November 2012

If someone files E-return of income tax, knowingly shows his savings more u/s 80C & 80D and claims excess refund than allowed to him or her; and the departmet after assessment , allows him that excess refund what are the penalties when the fact is disclosed?

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3 Replies

CA Mangesh Chitale (B. Com. A.C.A. DISA (ICAI) DIRM (ICAI)) (245 Points)
Replied 27 November 2012

AO will issue notice u/s 143(2) or 147 as the case may be. Extra deductions under chapter VI A will be disallowed & demand notice will be issued bu AO.

Penalty u/s 271(1)(c) is leviable for furnishing ''Inaccurate details of income".

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PRIYA KUMARI RANJAN (Finance Officer) (34 Points)
Replied 29 November 2012

Is there any time limitation for such penalty or demand? Does this relate with IPC? How much penalty and interest will be payable for furnishing wrong details of income?

CA Mangesh Chitale (B. Com. A.C.A. DISA (ICAI) DIRM (ICAI)) (245 Points)
Replied 29 November 2012

Don't worry madam, nothing is going to happen!!!!

According to provisions of Income Tax act, ITO can open/reopen case upto last 6 years. IPC provisions are not applicable here. Penalty u/s 271(1)(c) is minimum 100% & maximum 300% of amount of tax sought to be evaded.