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Wrong Income Tax Refund Malpractice:- Andhra Pradesh and Telangana state employees and tech employees have claimed wrong deductions and exemptions in their Income Tax returns. Tax officials are going to recheck the files and will register cases against the wrongly claimed refunds by intermediaries. IT officials asked the employees to recheck their claims that is to correct their mistakes before they take any action.

It is claimed that many of the deductions were claimed notably from the PAN Cards issued from Andhra Pradesh and Telangana. The employees have claimed for bogus deductions, that is to get returns from the clients for commission. They claimed a 75 per cent to 90 per cent Tax Deduction at Source (TDS) by the employer, IT department officially released the statement on Friday. A person who earns Rs 80Lakhs per annum showed that he donated Rs 40L to some political party. Such types of records were noticed in both Telugu states.

Income Tax officials seized the records of the names of employees who are involved in this malpractice. Under Section 140-B, the department has given them a chance to update the returns under Section 139(8A) for the financial years (AY) 2021-22 and 2022-23 and clear the dues. Department has urged the taxpayers not to do such of type of mistakes and asked them to file their returns correctly. According to Income Tax Act 1961, any wrong misreporting of income and claim will be awarded a 200 per cent penalty and might also lead to imprisonment.