Hyderabad: Income Tax Department tells taxpayers to file updated returns soon

Hyderabad: The Income Tax Department is issuing a warning to taxpayers who have made suspicious refunds, informing them that they can file updated returns and deposit the due taxes as per section 140B of the Income Tax Act. Mitali Madhu Smita, the Principal Chief Commissioner of Income Tax for Andhra Pradesh and Telangana, addressed the media on Friday, urging those who have wrongfully claimed refunds from the department to file updated returns u/s 139(8A) for AY 2021-22 and AY 2022-23 and deposit the appropriate taxes as per section 140B. For AY 2023-24, taxpayers can file revised returns u/s 139(5) if they have already filed the original return.

Mitali Madhu emphasised that misreporting of income and claiming wrongful deductions under the Income Tax Act can lead to severe consequences, including 12 per cent per annum interest, penalties up to 200 percent of taxes, and potential prosecution resulting in imprisonment. She urged taxpayers in Andhra Pradesh and Telangana to review their claims of deductions and exemptions made in the returns filed for AY 2023-24, AY 2022-23, and AY 2021-22, and promptly file updated/revised returns if the claims are unsubstantiated.

Mitali Madhu highlighted the trust the Income Tax department places in taxpayers, as evidenced by the fact that no proof of deductions or exemptions claimed is required to be uploaded during return filing. The returns are efficiently processed, and refunds are automatically credited to the taxpayer's bank account. However, the department also scrutinizes the accuracy of returns, including the eligibility of deductions and exemptions claimed. During this assessment, it has come to light that a significant number of salaried taxpayers in Andhra Pradesh and Telangana have made incorrect claims and obtained refunds based on those incorrect claims.

Shishir Agarwal, Chief Commissioner of Income Tax, pointed out that many taxpayers working for companies based outside Andhra Pradesh and Telangana have PAN cards registered in these states. It has been observed that numerous taxpayers have claimed refunds of 75 percent to 90 percent of the TDS deducted by their employers.

The Income Tax Department reiterates its trust in taxpayers and the streamlined process of return filing and refund disbursement. Taxpayers can seek assistance or clarification by reaching out to AayakarSevaKendras in local Income Tax Offices, visiting the department's website, or contacting the helpline numbers 18001030025/18004190025.