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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. T
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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.
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