🚨 Income Tax Crackdown: Fake Claims = Heavy Punishment
The Income Tax Department has intensified its crackdown on fraudulent tax deductions and inflated claims. Filing incorrect information in your ITR can now lead to serious consequences — including up to 7 years in jail, 200% penalty, and interest charges up to 24% annually.
Using AI tools and data analytics, the department has unearthed fake claims filed by refund agents, especially under popular sections like:
HRA – Section 10(13A)
Health Insurance Premium – Section 80D
Donations – Sections 80G, 80GGC
Interest on Education or Home Loans – Sections 80E, 80EE, 80EEB
So far, over ₹1,045 crore worth of fake claims have been reversed, with 40,000+ taxpayers filing revised returns (ITR-U) in the last 4 months alone.
According to tax laws, here’s what can happen if you're caught:
| Section | Offense | Penalty |
|---|---|---|
| 270A | Misreporting income or making false claims | 200% of the tax due |
| 234B & 234C | Delay or underpayment of advance tax | 24% annual interest |
| 276C | Willful tax evasion | Up to 7 years in prison |
The latest ITR forms now require mandatory disclosures, including:
Detailed HRA calculations
Insurance company information for Section 80D
Loan sanction and account details for 80E, 80EE, 80EEA
Even a small error could trigger auto-flagging and result in a tax notice.
If you suspect you’ve made an incorrect claim or missed some income:
File a revised return using ITR-U
Recheck details in AIS (Annual Information Statement) and Form 26AS
Avoid refund agents or intermediaries
Correct any errors honestly before you’re flagged by the department
🔁 ITR-U (Updated Return) is available for up to 5 years to voluntarily correct mistakes.
Don't fall into the trap of false deductions or shortcuts for bigger refunds. The tax department now has powerful tools to detect discrepancies. Stay honest, file accurately, and use ITR-U to make corrections if needed.
