Quick Summary
The investigation wing of the Income Tax Department in Hyderabad has initiated prosecution proceedings against two software professionals for allegedly attempting to defraud the tax system, despite being offered an opportunity to rectify their filings through the updated return (ITR-U) mechanism. The accused, employed with prominent city-based IT firms, initially filed returns claiming fake deductions under Section 80GGC of the Income Tax Act, which provides tax relief for political donations.
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Community
- Daily E-Newsletter
- Unlimited News Access
- Profile Visitors
- Link Social Profiles
- Featured Job Posts
- Pro Badge
- Expert GST Guidance
- Unlimited Forum Replies
- Download Content in PDF
1 Year PLAN
1999
(Excl. of GST ₹359)
BEST VALUE
2 Years PLAN
3499
(Excl. of GST ₹629)
3 Months PLAN
999
(Excl. of GST ₹179)
View all CCI PRO benefits
Already a PRO member? Login here for an ad-free experience.
FAQ :
The total amount of tax fraud involved in the two cases is Rs 2.22 crore.
The IT professionals misused the updated return (ITR-U) mechanism, which is intended for genuine rectification of omissions.
Initially, the professionals claimed fake deductions for political donations under Section 80GGC of the Income Tax Act.
Instead of making genuine corrections, they allegedly removed the false claims and inserted new bogus deductions.
Prosecution under Sections 276C(1) and 277 of the Income Tax Act can lead to rigorous imprisonment of six months to seven years and fines.
No, the ITR-U facility is a voluntary compliance tool for taxpayers to report unintentional under-reporting of income and pay due taxes, not for introducing new fraudulent claims.
CAclubindia
