Income Tax Dept. probes Rs. 1000 crore tax refund fraud by Govt. and PSU employees.

Updates

Belated or revised income tax return for the financial year 15-16 or 16 17 can be filed up to 31st March 2018. As per IT officials, some assessees do not show any income under the head income from house property in their original return but claimed losses under the head house property in there revised return.

Under section 24 of Income Tax Act interest on home loan is allowed as deduction and in absence of any income under the head house property it becomes loss under the head house property which is adjustable from salary income. As per IT officials, tax evasion takes place by inflating expenses, not revealing complete information and Forging documents. Most of such revised returns are filed by Govt and PSU employees. IT Department have shared information with CBI to examine the matter.

As per tax officials in the case of revised return, system automatically generate an alert message for the attention of the officer who processes or approves the refund.