Filing Income Tax Return (ITR) is an important responsibility of every citizen, but any kind of rigging or wrong claim can make you in trouble. The Income Tax Department has issued strict rules for ITR filing 2025, under which if a taxpayer makes a fake or wrong claim, it may face both heavy fines and interest. Taxpayers are advised to take extreme care while filling their ITRs so that any kind of punishment can be avoided.
Why can a penalty be fined?
If you make claims in your income tax returns that are beyond reality or are based on fraud, then the Income Tax Department takes it very seriously. In such cases, you may have to pay a penalty of late fees of ₹ 200 under Section 234F, and on top of it, interest can also be paid at the rate of 12% per month on the outstanding tax. This interest will apply until the entire outstanding tax and fine are paid.
What should be kept in mind?
Correct details of income: Give the correct and complete details of all sources of your income, such as salary, business, capital profit, rent or other income. Do not try to hide any income.
Accurate claim of cuttings: While claiming various deductions (such as 80C, 80D etc.), make sure you have all the documents and evidence to them. Avoid making fake or exaggerated claims.
Claim of wrong refund: Some taxpayers show less or deduction in their efforts to get additional refunds. Such claims can be easily caught.
Matching of TDS (TDS): It is mandatory to match the TDS shown in your Form 26AS with the TDS given in its ITR filing. Any discrepancy can cause investigation.
Transparency and accuracy is key:
The Income Tax Department is using data analytics and Artificial Intelligence (AI) nowadays, making it easier to detect mistakes and fraud than ever. The department has a keen eye on bank transactions, property procurement, large expenses and money spent on social media.
Therefore, the best way to avoid fines and legal action is to file your ITR with complete transparency and accuracy. Keep all the documents handled and seek the help of a professional tax advisor in case of any doubt. Considering the rules of ITR 2025, it is the safest and intelligent step to follow your tax liability honestly.
