<\/span><\/h3>\n\n\n\nIf you do not respond within 10 days, a penalty of Rs 500 per day will be levied.<\/p>\n\n\n\n
Note –<\/strong> if the false claim is seen as intentional fraud, you can face criminal charges. Jail time can be from 3 months to 7 years, depending on how serious the case is.<\/p>\n\n\n\n<\/span>Are tax consultants also responsible?<\/span><\/h2>\n\n\n\nYes, if your tax consultant or agent helped file a false refund claim knowingly, they can also face penalties and legal action. The tax department can hold them equally responsible for the fraud. So, choose your tax helper carefully and make sure everything is truthful.<\/p>\n\n\n\n
<\/span>What if you claimed by mistake?<\/span><\/h2>\n\n\n\nIf you honestly made a mistake in your refund claim, you should correct it as soon as possible by filing a revised return or informing the tax department. Being upfront can help avoid heavy penalties or legal trouble.<\/p>\n\n\n\n
<\/span>Option to File ITR-U<\/span><\/h3>\n\n\n\nIf you do not have proof, you can file an updated return (ITR-U) to correct your income and details. You will be required to pay any additional tax, interest, or penalty, and submit your response to the notice under Section 133(6).<\/p>\n\n\n\n
Mistakes happen but fixing them early means a lot.<\/p>\n\n\n\n
<\/span>Can you fix a wrong claim later?<\/span><\/h2>\n\n\n\nYes, you can file a revised income tax return within the allowed time to correct wrong claims. This helps you avoid penalties and shows you\u2019re co-operating with the tax department.<\/p>\n\n\n\n
It\u2019s always better to fix errors than ignore them.<\/p>\n\n\n\n
<\/span>Conclusion and Key Takeaways<\/span><\/h2>\n\n\n\nClaiming bogus ITR refunds can lead to serious financial and legal trouble. To stay safe:<\/p>\n\n\n\n