The income tax department has busted a Rs 40 crore tax refund scam in Hyderabad. The scam involved eight tax consultants, several employees of the railways and police department, and several technology companies in Hyderabad and Vijayawada.
The modus operandi of the scam was to file fraudulent tax returns on behalf of the employees, claiming refunds that they were not entitled to. The tax consultants would then pocket a portion of the refund amount as commission.
The I-T department has now launched an investigation into the scam. The investigation is ongoing, and more arrests are expected.
This is a serious scam, and it is a reminder that taxpayers need to be careful when filing their tax returns. They should only use licensed tax consultants, and they should carefully review their tax returns before submitting them.
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