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Income Tax Dept Flags Wrongful Deductions
27 Nov
Summary
- Tax department investigating wrongful deductions claimed by taxpayers.
- Refund issuances dropped 18% between April and November 10.
- Over 40% more appeals disposed of this year compared to last year.
The Central Board of Direct Taxes (CBDT) is actively scrutinizing income tax refund claims for FY 2024-2025 due to identified wrongful deductions. As of November 10, refund issuances have decreased by approximately 18%, totaling over ₹2.42 lakh crore. This dip is attributed partly to a decrease in refund claims, even as Tax Deducted at Source (TDS) rates were rationalized.
The department has identified certain "high-value" or "red-flagged" refund claims and has advised taxpayers to submit revised returns if any omissions were made. This measure aims to ensure accuracy and compliance in tax filings, preventing unjustified deductions from impacting the fiscal process.
In parallel, the CBDT is intensifying efforts to reduce direct tax litigation. Appellate authorities are working diligently, resulting in a disposal rate of over 40% more appeals this year compared to the previous one. The department anticipates a substantial increase in resolved cases by the year's end.
