The Income Tax Department has revised over five million Income Tax Returns (ITRs) following the identification of incorrect or bogus deduction claims, leading to a significant drop of around Rs 2,000 crore in refund amounts. This action was taken after a verification drive, particularly targeting deductions under Section 80G for charitable donations. The department opted for voluntary compliance, alerting taxpayers to revise their returns instead of initiating immediate scrutiny.
More than five million Income Tax Returns (ITRs) were revised last year after the Income Tax Department flagged incorrect or bogus deduction claims, leading to a reduction of nearly Rs 2,000 crore in refund claims, according to Ravi Agrawal, chairman of the Central Board of Direct Taxes.
The inform
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 Broadcasts
-
Daily E-Newsletter
-
Unlimited News Access
BEST VALUE
2 YEAR PLAN
3,499
(Inclusive of GST)
1 YEAR PLAN
1,999
(Inclusive of GST)
Buy CCI PRO Now
Already a PRO member?
Login here
for an ad-free experience.
FAQ :
Over 50 lakh (five million) Income Tax Returns were revised.
ITRs were revised because the Income Tax Department flagged incorrect or bogus deduction claims, particularly for donations made to charitable organisations under Section 80G.
Refund claims dropped by approximately Rs 2,000 crore.
The department opted to alert taxpayers and encourage voluntary revision of their returns rather than initiating formal scrutiny proceedings.
The tax department is using enhanced technology, including advanced data analytics and AI-based risk profiling systems, which integrate various financial data sources to detect discrepancies early.