IT refund scam in Hyderabad: 200 employees forced to return tax money

Hyderabad Central Crime Station officials have confirmed that employees of various IT companies in Hyderabad including the Polaris Company employees, faked disability and chronic illness of family members in order to fraudulently claim income tax refund.

200 such employees who have placed fake certificates or stated long-term illness and even faked disabilities are now forced to return the tax money.

Two Income Tax practitioners were found to have processed these dubious I-T refund claims. Mohan Babu, director of Income Tax, investigating the case filed the complaint with CCS police. The chargesheet was filed by the Additional Chief Metropolitan Magistrate Court against N Srinivas Goud and Mohammed Khalil on Income Tax refund discharges.

CCS assistant commissioner of police K Ram Kumar said that they will take against these illegal activities elaborating that Section 80D and 80 DD will be refunded only in the tax returns for health reasons but defendants continued their illegality by taking advantage of it.

He further said that the loss to the Income Tax department was Rs 1.36 crore with the IT employees creating false medical papers in the name of family members and making a refund of Rs 50 to Rs 1 lakh.

According to the reports, both the accused have been committing to these irregularities for the past five years. Cases have been registered against the two under IPC-420 and IPC-406.