The Income-Tax Department has recovered Rs 1,070 crore from approximately 90,000 taxpayers who had claimed incorrect or higher tax deductions. The deductions have been claimed under various sections such as 80C, 80D, 80E, 80G, and 80GGC, thus bringing down the actual amount of taxes payable.
The department found many of these taxpayers were employees of public sector undertakings, multi-national corporations, and private limited companies. Further investigation revealed that unscrupulous elements had misguided these taxpayers into making these claims without the knowledge of their employers.
To deal with this problem, the department has been running outreach programs with employers to create awareness among them of the consequences of claiming incorrect deductions and what taxpayers can do to correct such errors. Taxpayers can file revised returns to withdraw any incorrect claim of deduction to make their compliance correct. However, surrendering such claims in the amended return attracts differential tax, interest, and an additional cost depending on when the revised tax return is being filed. Business Standard