NEW DELHI: As part of its crackdown on bogus claims, the income tax department has advised employers to analyse mismatches in their salary related filings, while also looking to move against several cases of “swapping” of concessions after suspected irregularities were flagged and taxpayers updated or revised their returns.Officials said they have come across several cases where taxpayers have “swapped provisions” to claim benefits: For instance, employees with high HRA claims withdrew it and instead claimed benefit under section 10(14) of the Income tax Act, which allow benefits under allowances such as conveyance, education or for working in hilly areas.Similarly, in some cases, when the updated returns were filed, taxpayers sought to change the provision from say donation to political parties to research institutes. “In several cases the additional income tax paid is just a few hundred,” said an official.
In any case, the threshold for reaching out to taxpayers with suspected claims was Rs 50,000 to Rs 1 lakh. Some 15,000-20,000 cases have been identified which are likely to be taken up for scrutiny so that wrongdoers can be punished. The move is part of the department’s Nudge campaign, which makes targeted pitches to come out clean and in the extreme case acts against wrongdoers.Separately, employers have been contacted, asking them to analyse the mismatch in Form 24Q relating to TDS deducted by them. Companies and even govt departments have been sensitised about educating their staff against falling prey to touts, who have in the past encouraged individuals to make bogus claims in their returns for a commission.With tax authorities now armed with data analytics tools, it is easy to identify red flags and then nudge them through mails and messages by sharing data. In most cases, officials have said that taxpayers voluntarily comply and correct or update their returns in case of information slipping their attention at the time of filing.It only acts against those who do not disclose their income accurately. Tax returns have also been updated to ensure that details are shared with tax authorities on aspects, such as health insurance or education or EV loans.