It came to light following an investigation by the Income Tax Department, which discovered incorrect deductions under various sections, including 80C, 80D, 80E, 80G, 80GGB and 80GGC, in the income tax returns (ITRs) of these individuals.
The investigation revealed that most of the people who claimed wrongful deductions were working in the same company, and a vast mismatch was found between the total deductions claimed and the total receipts shown in their ITRs.
“Till December 31, 2024, approximately 90,000 taxpayers have withdrawn incorrect claims of deductions amounting to around ₹1,070 crore in their ITRs and have paid additional taxes,” said one of the persons, who did not wish to be identified.
The income tax department has identified a list of common employers and will reach out to those suspected of claiming bogus deductions.
To promote voluntary tax compliance and reduce litigation, the tax department has been conducting outreach programmes with employers. Taxpayers can file updated returns and rectify errors within two years from the end of the relevant assessment year.The department has also warned against unscrupulous elements misguiding taxpayers to claim incorrect deductions.
