Latest news with #I-T
Mint
3 days ago
- Business
- Mint
I-T department is cross-verifying claims in real time. You've been warned.
NEW DELHI : For a long time, people have been getting away with making inflated or false claims in their income tax returns (ITRs). Unless returns are picked up for post-filing scrutiny by officials, the income tax (I-T) department can do little to stop individuals from beating the system. But this income tax season, this is going to change. The I-T department is rolling out an integrated verification system designed to automatically cross-check information against multiple government databases at the time of ITR filing. Imagine a taxpayer filling out inaccurate details of their investment claim—home loan details, house rent allowance (HRA), or insurance—the system will immediately throw up an error and prompt the taxpayer to modify the return. Also Read: How you can save tax by getting a mobile phone, laptop or car lease from office Meaning: Taxpayers will be caught red-handed if they try to play smart. 'You can no longer fake a loan account number or a policy document number," said Ashish Karundia, founder of Ashish Karundia & Co., Chartered Accountants. 'These are now directly mapped to your permanent account number (PAN) or Aadhaar." Cross-platform data sharing Insurance companies, for instance, already share data with the government. So, if a person tries to claim a deduction using someone else's insurance policy number, the system can identify the discrepancy. The real-time verification now extends to HRA claims, loans for housing and education, and even deductions on electric vehicles. Each claim is verified using backend integrations with banks and platforms such as the m-Parivahan app. "As soon as a taxpayer inputs any detail, say a loan number or an insurance policy, the system cross-verifies it instantly with the information they already have. If something doesn't match, it throws an error and prompts the taxpayer to modify their return," Karundia added. To be sure, so far, verification has been happening manually and after the detection of a post-filing discrepancy. 'The I-T department would look at your return, flag inconsistencies, and then issue a notice. It was slow and added to the workload of tax officials," he said. Now, the department aims to entirely automate this process. To do so, the newly notified ITR forms require taxpayers to provide a detailed breakup of income tax deductions through specific drop-down fields, replacing the earlier practice of entering a single consolidated figure, according to CA Vijaykumar Puri, Partner at VPRP & Co LLP. Also Read: Legal minefield: Decoding capital gains tax on the sale of leasehold and tenancy rights He explained how earlier, someone could simply write ₹1.5 lakh under Section 80C without specifying if it was in PPF, ELSS, or LIC. 'Now, taxpayers must specify the exact amounts invested in instruments like PPF, ELSS, or LIC. This added transparency will not only deter fake claims but also give the tax department clear visibility into the nature of each deduction," he said. A nudge towards the new tax regime The move from human-led scrutiny to system-led verification is crucial for ensuring better compliance and fewer fraudulent claims. 'It significantly reduces the scope for manual oversight and any manipulation. It eliminates case-by-case verification, conserves departmental resources, and ensures quicker, more reliable compliance," he added. Less human involvement also means that people won't be able to fabricate investment proofs like rent receipts for claiming HRA deduction. 'When people know that everything is digitally captured, the chance of fraud automatically goes down," Karundia said. Karundia explained that the move is a step closer to former finance minister Arun Jaitley's broader strategic vision of lower tax rates, fewer exemptions, and minimal discretion introduced. In essence, by automating cross-verification and reducing human intervention, the I-T department is pushing taxpayers towards an exemption-less new tax regime. Also Read: Capital gains on equities: Here's all you need to know when filing tax returns this year The I-T department on 27 May extended the ITR filing due date for FY25 (AY26) from 31 July to 15 September. The decision was made after a delay in issuing the notification of ITR forms.
Time of India
5 days ago
- Time of India
3 behind 76 e-fraud cases held, ‘kingpins in Dubai & Cambodia'
Navi Mumbai: Three history-sheeters suspected to have been involved in 76 cyber fraud cases in different states have been arrested by Navi Mumbai crime branch's central unit as part of its probe into a 58-year-old Nerul doctor being cheated of Rs 1.8 crore after being put in a month-long digital arrest. Police suspect the racket's masterminds are operating from Dubai and Cambodia. The accused allegedly set up a rental office to execute their con under the guise of operating a startup, and even procured a shop licence and other mandatory documents, which enabled them to open fake bank accounts after verification by bank officials. Two of the three history-sheeters—Andheri resident Ramesh Shet (45) and Amish Shah (42) from Kalbadevi —were arrested on April 18. The third, Rajkumar Narang (55), who hails from Ahmedabad, was arrested on May 23. All three have been remanded in police custody. Police have invoked relevant sections of BNS for organised crime, forgery and criminal conspiracy. DCP (crime) Amit Kale said a fraudster, posing as an I-T official, called up the doctor via WhatsApp in Jan and told her that Delhi police had lodged a complaint against her over Rs 8.6-lakh income tax dues of a firm registered in her name. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch CFD với công nghệ và tốc độ tốt hơn IC Markets Đăng ký Undo The doctor was also accused of being involved in a money laundering case. "The fraudster kept her under digital arrest for one month and sent her fake letterheads of CBI, ED and Supreme Court for initiating legal action against her," said Kale. Under the pretext of RBI verification of her bank and investment accounts, the fraudster coerced her into transferring Rs 1.8 crore to six bank accounts, he said. When the caller went incommunicado after these transfers, the doctor realised that she had been conned and approached police. A police officer told TOI that in the fraudsters' gang, Shet and Shah's role involved opening fake bank accounts to transfer victims' money, while Narang served as a coordinator. Once an account's internet banking facility was activated, Narang increased the transaction limit to enable transfer of more than Rs 25 lakh in one go, said the officer. Police have recovered Rs 11.4 lakh in cash, apart from a laptop, 18 phones, cheque books of 18 banks, 32 debit cards, 33 cheque book leaves of different banks, 27 SIM cards, two bank passbooks, eight rubber stamps of 10 bogus companies, and documents submitted to open 36 bank accounts of the fake companies.
Time of India
27-05-2025
- Business
- Time of India
Deadline to file ITR extended to September 15 amid systems tweaks
Photo/Agencies NEW DELHI: The income tax department has extended the deadline for filing of tax returns by individuals from July 31 to Sept 15 in the wake of several amendments to the law, which have necessitated revisions in the notified ITRs for this assessment year, requiring the authorities to rework the technology platform, among other things. "The notified ITRs for Assessment Year 2025-26 (FY2024-25) have undergone structural and content revisions aimed at simplifying compliance, enhancing transparency, and enabling accurate reporting. These changes have necessitated additional time for system development, integration, and testing of the corresponding utilities. Furthermore, credits arising from TDS statements, due for filing by May 31, 2025, are expected to begin reflecting in early June, limiting the effective window for returns filing in the absence of such extension," the Central Board of Direct Taxes (CBDT) said in a statement. For the last few years, the tax department has been sticking to the July 31 deadline meant for individuals who do not need to get audits done. The deadline covers the bulk of I-T returns filed during the year. Whenever the deadline has been extended in the past, it has happened quite late in the day. But this time the I-T department has opted to inform taxpayers early. "Given the requirements of these new ITR forms, the e-filing utility (both online and offline) needs to be updated by govt. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Trading CFD dengan Teknologi dan Kecepatan Lebih Baik IC Markets Mendaftar Undo Therefore, it is a very welcome move to extend the ITR filing deadline..., allowing taxpayers the time required to comply with these enhanced reporting requirements and legislative changes," said Sonu Iyer, partner and national leader for People Advisory Services-Tax at consulting firm EY India. "Given the complexity and increased reporting requirements in the revised ITR forms, including more granular disclosures of capital gains, foreign income, and asset ownership, the extension offers much-needed relief to taxpayers... taxpayers are advised to utilise this extended window to compile their financial data, reconcile necessary information, thereby minimising the risk of filing errors or omissions," said Sandeep Sehgal, tax partner at consulting firm AKM Global. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
27-05-2025
- Business
- Time of India
I-T busts 100cr refund scam, govt staffers involved
Chennai: The Income Tax Department has uncovered a bogus refund scam worth around 100 crore involving income tax practitioners (ITPs), chartered accountants, and intermediaries in Chennai, Madurai, Trichy and Jharkhand. A series of survey operations were launched based on intelligence from Directorate General of Income Tax (Investigation), Tamil Nadu and Puducherry, targeting individuals involved in filing fraudulent income tax refund claims on behalf of nearly 4,000 taxpayers nationwide. Operations were conducted at multiple locations, including Krishnagiri, Salem and Coimbatore, besides Dhanbad, and Deoghar. Officials said these intermediaries submitted fake claims under various sections of the Income Tax Act, generating large sums. The fraudulent activities primarily targeted govt employees including defence personnel across the country. Officials said agents used advertising and outreach campaigns promoting "maximum tax refunds" to lure people. In many cases, investigators found common email IDs created in bulk to file claims on behalf of individuals without their knowledge. In one case, a Dhanbad-based agent submitted fraudulent refund claims for more than 1,000 taxpayers. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Switch to UnionBank Rewards Card UnionBank Credit Card Apply Now Undo "Some taxpayers appear to have intentionally collaborated with these agents. We are identifying these people," an I-T department official said. "Dozens of agents have already been tracked based on mobile numbers used to reach potential clients." This incident follows a larger I-T refund fraud uncovered in Mumbai in July 2024, where businessman Anirudh Gandhi was arrested by Enforcement Directorate (ED) sleuths for orchestrating a 263.95 crore scam involving fraudulent TDS refunds. A Chennai-based tax consultant said, "Those involved should correct their filings promptly to avoid penalties and possible prosecution." Investigations are on to determine the scale of the fraud, officials said.
Mint
27-05-2025
- Business
- Mint
Income-tax return filing deadline extended to 15 September
New Delhi: India's apex direct tax policy making body has extended to 15 September the income-tax return filing due date for the assessment year 2025-26 (FY2024-25) for those who do not need to get their accounts audited. The Central Board of Direct Taxes (CBDT), an arm of the Union finance ministry, announced the decision in a statement on Tuesday. Usually, the deadline for filing I-T returns falls on 31 July. The deadline for filing the returns has been extended because the digital ITR forms are being changed this year, which require more time to update the tax systems and release the necessary filing software, the CBDT said. Experts said typically, the software utilities are made available early in April. To be sure, the forms have been notified but have not been updated in the filing software. This year's ITR forms have undergone significant revisions to boost transparency and simplify taxpayer compliance. They require more disclosures on tax-saving investments, house rent allowance (HRA), and tax deducted at source (TDS) on non-salary incomes. Alongside, compliance has been eased on assets and liabilities reporting. Those with long-term capital gains (LTCG) of up to ₹ 1.25 lakh from stocks and equity mutual funds can now opt for the simpler ITR-1, Mint reported on 7 May. Tax experts have welcomed the move. 'Given the complexity and increased reporting requirements in the revised ITR forms, including more granular disclosures of capital gains, foreign income, and asset ownership, the extension offers much-needed relief to taxpayers,' said Sandeep Sehgal, partner-tax at AKM Global, a tax and consulting firm. The additional time, Sehgal added, is intended to facilitate a smoother transition to the new compliance regime, allowing taxpayers to correctly interpret the updated requirements, and ensure accurate and complete return filings. Sonu Iyer, partner and national leader, people advisory services-tax at EY India, said the ITR forms notified for the FY 2024-25 (AY 2025-26) incorporate the amendments introduced by Finance Act 2024 and have enhanced reporting requirements. Coming to the aid of middle-class tax payers, in the budget 2025-26, the government announced that there will be no income tax payable up to income of ₹ 12 lakh–average income of ₹ 1 lakh per month other than special rate income such as capital gains–under the new regime. This limit will be ₹ 12.75 lakh for salaried tax payers, due to standard deduction of ₹ 75,000. Also, in budget 2025-26, finance minister Nirmala Sitharaman rationalized the TDS by reducing the number of rates and thresholds above which it is applied. Further, threshold amounts for tax deduction have been increased for better clarity and uniformity. Tax policy reforms are geared to widen the tax base, detect undeclared income through data matching and promote digital compliance. The Income Tax department collected ₹ 22.26 trillion in direct taxes after adjusting for refunds in the financial year ended March 2025, recording an annual growth of 13.57%, as per official data.
