
Income Tax Department: The effect of the steps taken by the Income Tax Department to make ITR filing easy and transparent is now clearly visible. From cracking down on fake CAs and scammers to giving correct guidelines to taxpayers, the department has taken many important steps. Due to these efforts, 'Income Tax Department' has been trending in the top keywords on Google Trends for the last 15 days. People are using this keyword extensively to get solutions to tax-related problems.
The Income Tax Department is not in the news only because of ITR filing. In the last 10 days, many such news stories have come out in which the department has started strict action against chartered accountants and other institutions involved in fake tax activities.
Crackdown on fake claims
Recently, the government issued a circular stating that some taxpayers obtained wrong refunds through fake deductions and exemptions. The Income Tax Department has taken a tough stand to stop such activities. On July 14, the Finance Ministry issued an important circular, stating that some chartered accountants and professional intermediaries were helping taxpayers get more refunds through fake deductions and exemptions. After this circular, the Income Tax Department started raiding 150 to 200 places across the country. These raids were mainly focused on those institutions and individuals who were making fake claims in items like political donations, tuition fees, and health expenses.
Use of AI and data analytics
In this entire action, the Income Tax Department resorted to Artificial Intelligence (AI) and Data Analytics. Initial investigation revealed that many taxpayers received incorrect refunds on the basis of fake receipts and documents. In some cases, TDS returns were also filed fraudulently. The effect of this strictness of the department was that in the last few months, about 40,000 taxpayers themselves came forward and withdrew their wrong claims. The total value of these claims was about Rs 1,045 crore.
Government employees and corporate professionals are also involved
The investigation also revealed that government employees, PSU employees, and professionals working in multinational companies were also involved in this fraud. In many cases, people were learning ways to get fake refunds through WhatsApp and Telegram groups. Information about preparing fake documents and filing false claims was being shared through these groups.
Effect of the strictness of the Income Tax Department
This strict action of the Income Tax Department has not only exposed the fraud but has also increased awareness among taxpayers. The technical and policy reforms made by the department have made ITR filing more transparent. Also, with the use of AI and data analytics, the identification of fake claims has now become faster and more accurate than ever.
This campaign of the Income Tax Department is not only helping in preventing tax evasion, but is also helping honest taxpayers by giving them the right guidelines. Along with trending on Google Trends, this activism of the department is working to increase confidence in the tax system.
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