I-T lens on Telugu states over sharp refunds graph

HYDERABAD: The income tax department has turned its lens on the two Telugu states after it was reported that they had the highest percentage of income tax refund growth rate. Shedding light on fraudulent returns, the department's principal chief commissioner, Mithali Madhusmita, said most of them were filed by techies, government employees and those working with public sector units.

She added that bogus returns were filed with the advice of intermediaries claiming to be income tax consultants. "On being questioned, some clients admitted to having got wrongful refunds. Many such taxpayers have already filed updated returns, and many more are expected to join them."

According to the tax officials, the onus lies more with the taxpayer than the consultant. Madhusmita said, "Under the Income Tax Act, there are severe consequences of misreporting income and claiming wrongful deductions. These include 12% interest per annum apart from a 200% penalty and prosecution, which may entail imprisonment." Those filing updated returns can get away with 25% or 50% additional tax.

For 2023-24, income tax original returns must be filed by July 31

If already filed, revised returns can be filed till December 31. Those who miss the December deadline can file revised returns with 25% penalty by March 31, 2025

Those ready to pay 50% of additional income tax can file returns by March 31, 2026.

For 2022-23 no original returns or revised returns can be filed. However, those who filed fraudulent returns can file updated returns with 25% additional tax by March 31, 2024, and 50% tax by March 31, 2025.