Strict action against CAs and agencies who mislead taxpayers

The Income Tax Department is cracking down on fake refund claims for the assessment years 2021-22 and 2022-23 ¹.

They have identified suspicious refund claims, especially those filed by individuals promising disproportionately large refunds through potentially deceptive practices ¹. 

The department's current focus includes tax refund claims involving exaggerated expenses and unsubstantiated disability and medical claims ¹.

 Chartered Accountants (CAs) and tax agencies have come under scrutiny, as several claims originate from single entities or networks allegedly encouraging inflated refund applications ¹.