To avoid these actions, defaulting employees are advised to file updated Income Tax Returns (ITRs) under section 139(8A)
Srinagar, J&K- The Finance Department of the Government of Jammu and Kashmir has released a circular addressing the large-scale fraudulent claims of tax refunds by employees across various departments of the Union Territory.
The circular, numbered 03-FD of 2024 and dated March 2024, cites a communication from the Principal Commissioner of Income Tax, J&K and Ladakh, highlighting the issue.
According to the circular, a significant number of employees from departments such as Education, Health, Public Works, Police, and others have been found to claim excessive deductions under sections like 80C, 80D, 80DD, 80DDB, 80E, 80EE, 80EEB, 80G, 80GGC of the Income Tax Act, for which they are ineligible.
These claims are inconsistent with their income profiles and have prompted the Income Tax Department to take action.
The potential consequences for the defaulting employees include:
- Detailed scrutiny of cases, leading to tax levies, a 200% penalty on the evaded tax, and applicable interest.
- Prosecution under sections 276C and 277 of the Income Tax Act, which could result in rigorous imprisonment ranging from 3 months to 7 years, along with fines.
- Attachment of bank accounts to recover the fraudulently claimed amounts.
- A penalty of ₹10,000 for each instance of non-compliance with the department's communication.
To avoid these actions, defaulting employees are advised to file updated Income Tax Returns (ITRs) under section 139(8A) and withdraw incorrect claims, paying the due taxes under section 140B. The circular outlines the deadlines for filing updated ITRs for the financial years 2020-21, 2021-22, and 2022-23, urging immediate action to prevent further penalties and legal proceedings.
Administrative Secretaries and Heads of Departments are instructed to issue advisories and ensure that employees comply with the directives to file updated ITRs within the prescribed timelines.
The circular emphasizes the government's commitment to maintaining fiscal discipline and upholding the integrity of the tax system.
| Financial Year | Assessment Year | Last date to file updated ITR |
|---|---|---|
| 2020-21 | 2021-22 | 31st March 2024 |
| 2021-22 | 2022-23 | 31st March 2025 |
| 2022-23 | 2023-24 | 31st March 2026 |
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