Income Tax Department Targets Bogus Refund Claims, Issues Notices To Taxpayers

The Income Tax Department has issued notices to several taxpayers who have claimed disproportionate refunds, according to people with knowledge of the matter. The department has raised concerns over the rising number of suspicious tax returns and refund claims, particularly from unscrupulous individuals, the people said.

The department has targeted chartered accountants and agencies that promise large refunds, often using fraudulent means, the people quoted above told NDTV Profit, adding that many of the refund claims involve bogus expenses, disability, and medical claims.

The notices have been issued for the assessment years 2021-22 and 2022-23, covering taxpayers across the country, said the people.

Major cases have been reported in cities like Gurugram, Ghaziabad, Mumbai, and Bengaluru, said the people, adding that the Income Tax Department is closely monitoring large tax refund claims, particularly those coming from a single CA or agency and strict action against CAs and agencies that misguide taxpayers into claiming incorrect refunds.

This is a developing story.