Income Tax Rules: Important news for taxpayers. Actually, if the income tax return is not filed, a penalty is imposed. There is a provision of a penalty of up to Rs 5000 for this. If it is found that the TDS return has not been filed within a year, then there is a provision of a penalty of Rs 10 thousand to 1 lakh…
Income Tax Rules: Important news for taxpayers. Actually, if the income tax return is not filed, a penalty is imposed. There is a provision of a penalty of up to Rs 5000 for this. If it is found that the TDS return has not been filed within a year, then there is a provision of a penalty of Rs 10 thousand to 1 lakh…
If they do so, the Income Tax Department will not only impose a fine on them but will also take legal action under the Income Tax Act. There are different provisions for punishment under this Act. The punishment or fine depends on the type of irregularity and if tax evasion is done then there is a different punishment for that. Let’s have a look at the provisions of the IT rules:
– Returns are checked by an automated system
– No employee can do any fraud in this
– Many departments investigate if the theft is detected
Wrong claim in the return will be considered tax evasion-
According to the Income Tax Department, if a salaried employee makes a wrong claim in the return on the wrong advice of a CA or tax consultant, then it will be considered tax evasion. In this case, not only will action be taken against him but that CA or tax consultant will also get trapped.
Also, the department will conduct a thorough investigation of tax evasion at its level. The department has a big automated system to check this, which is used in the processing of ITR. No employee or officer can manipulate it.
Vigilance department will investigate tax evasion-
The information about wrong claims of employees of government departments or public sector undertakings will be given to the concerned vigilance department. It will take action as per rules and provide its information to the department. In this case, a fine will be imposed under section 270A. This provision has been recently added to the IT Act.
If the fraud is proved, then a penalty of 50% of the tax on the income will be imposed. However, if wrong income is declared by submitting wrong documents, then this penalty will increase to 200%. In this, action will be taken under section 276C. In such cases, there is a provision of punishment from six months to 7 years. The fine can be up to Rs 25 lakh.
Punishment if income is found from unknown sources-
The department says that just declaring the income is not enough but it is also necessary to give information about the source of income. Under section 271AAC of the Income Tax Act, the Income Tax Officer can impose a penalty at the rate of 10 percent in this case. There is a provision of penalty for income cash credit, undeclared investment, unknown wealth, wrong disclosure of investment amount and not giving correct information about expenses. If during the processing of the return it is found that tax audit was not done, then also penalty is imposed. This is only for businessmen or companies.
Punishment for not filing return or delay-
If income tax return is not filed, then also a penalty is imposed. There is a provision of penalty up to Rs 5000 for this. If it is found that TDS return has not been filed within a year, then there is a provision of penalty from 10 thousand to 1 lakh rupees. If a person has not linked PAN card to Income Tax Account, then this also comes under the category of crime.
If the details of PAN are wrong, then also it is a crime, in such a case a fine of up to 10 thousand rupees can be imposed. If any mistake is found in the case of TAN (Tax Deduction and Collection Account Number), a fine of Rs 10,000 is imposed. If any of these mistakes is found to be too big and someone’s crime is proved, then along with the fine, he can also be jailed.
Punishment if income is found from unknown sources-
The department says that just declaring the income is not enough, but it is also necessary to give information about the source of income. Under section 271AAC of the Income Tax Act, the Income Tax Officer can impose a penalty at the rate of 10 percent in this case. There is also a provision of penalty if the income is from cash credit, undeclared investment, unknown money, wrong investment amount and not giving correct information about expenses. If it is found during the processing of the return that tax audit was not done, then also a penalty is imposed. This is only for businessmen or companies.
Punishment for not filing return or delay-
If the income tax return is not filed, then also a penalty is imposed. There is a provision of a penalty of up to five thousand rupees for this. If it is known that the TDS return has not been filed within a year, then there is a provision of a penalty of 10 thousand to 1 lakh rupees.
If a person has not linked the PAN card to the income tax account, then this also comes under the category of crime. If the details of the PAN are wrong, then also it is a crime, in such a case a fine of up to 10 thousand rupees can be imposed. If there is a mistake in the case of TAN (Tax Deduction and Collection Account Number), a fine of 10 thousand rupees is imposed. If any of these mistakes is found to be too big and someone’s crime is proved, then along with the fine, he can also be jailed.
