Income Tax Department Warns Against False Claims

As the income tax filing season for the assessment year 2024-25 approaches its July 31 deadline, the Income Tax Department has issued a stern warning against fraudulent claims, including overstating deductions and underreporting income, which are considered punishable offenses. Over five crore income tax returns (ITRs) have been filed as of July 26, showcasing significant compliance among taxpayers. The department emphasizes that accurate filing is crucial for timely refunds, as any discrepancies could result in verification checks and delays. Moreover, the new tax regime is gaining traction, with over 66% of filings opting for its lower rates despite the loss of traditional deductions. Taxpayers are urged to ensure all claims, including Tax Deducted at Source (TDS), are correct to avoid penalties. In case of delayed refunds, individuals should check their e-filing accounts for necessary updates from the department.