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Police directs its employees to pay actual tax to address IT return fraud

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Srinagar, Mar 28: Admitting that some of its employees have raised fraudulent claims of deductions and refunds in their tax returns, the Jammu and Kashmir Police on Tuesday instructed the DDOs to direct all officers and officials under their charge to update their Income Tax Returns for the financial years 2019-20 and 2020-21 on or before March 31, 2023, failing which action would be taken against them.

In a letter, the J&K Police said that their employees have been caught claiming excessive deductions and refunds under various sections of the Income Tax Act, according to a recent analysis by the Income Tax Department.

“The investigation into refunds issued in the FY 2021-22 and 2022-23 found that a large number of individual taxpayers, including many police officers and officials, had claimed these deductions without being eligible for them,” it said.

The Director General of Income Tax (Systems) analyzed the data of every individual taxpayer and identified cases of fraudulent claims and bogus refunds. It was discovered that many employees belonging to J&K Police had made such claims, which is a matter of grave concern, added the letter.

“The Income Tax Department now has a list of all individuals who have made excessive or bogus claims and refunds on TDS made by their DD0s. The cases will be scrutinized, and recoveries will be made by the IT Department. The penalty under Section 270A of the Income Tax Act will be 200 percent of the tax levied. In addition, the cases of these employees may also be taken up for prosecution under Section 276C of the I.T. Act.”

“However, the Income Tax Act provides a limited window for taxpayers to update their returns of income by paying their actual due tax along with a penalty. For FY2019-20 (AY2020-21), the penalty is 50 percent of additional tax plus interest, and for FY2020-21 (AY2021-22), it is 25 percent. Taxpayers can update their returns of income through ITR-U under Section 139(8A) before March 30, 2023.”

Given the sensitivity and urgency of the matter, all DD0s of J&K Police have been instructed to direct all officers and officials under their charge to update their Income Tax Returns on or before March 31, 2023. If any employee fails to do so, action will be taken against them by the IT Department as mentioned above. This directive has been issued with the approval of the DGP of J&K.


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