The Income Tax Department has made strict rules for filing Income Tax Return (ITR). With these rules, now you cannot give wrong information while filing income tax return. Under the new rules, taxpayers found guilty of giving misleading information may have to face a penalty of up to 200% of the tax payable, 24% annual interest and prosecution under Section 276C of the Income Tax Act. Apart from this, the new Income Tax Return (ITR) rules also have a provision for punishment for taxpayers who claim wrong deductions or hide income.
The Income Tax Department has said that the offenders may have to face a penalty of up to 200% of the tax payable, 24% annual interest and prosecution under Section 276C.
With these new rules of the Income Tax Department, no one will be able to avoid paying income tax. In such a situation, income tax payers will have to fill income tax returns carefully.
It is important for taxpayers to ensure that all claims and deductions in their returns are accurate and supported by proper documentation.
Same rule for all taxpayers
This provision of punishment under the new rules applies equally to all types of taxpayers including salaried individuals, freelancers, professionals and businesses.
There can also be punishment on return revision
If a taxpayer files a wrong return, then revising the return will not exempt the taxpayer from the penalty. To avoid these penalties, taxpayers should ensure that their income details are aligned with their annual information statement and all claims are supported by valid evidence.
Filing income tax returns late should also be avoided. The department has provided different ITR forms for every type of taxpayer. Taxpayers should choose the right form based on their current situation.