Income Tax update: Important news for taxpayers. In fact, any wrong attempt to hide or save tax can put you in big trouble… Now this big action will be taken.
If you are also a taxpayer, then this news is useful for you. Let us tell you that any wrong attempt to hide or save tax can land you in big trouble. The Income Tax Department has already given a warning regarding this. If any person is found involved in such work, then the IT department will charge a fine from him.
In case of tax evasion, penalty can be imposed on the total amount saved from tax. Many times a taxpayer tries to reduce the tax liability by under-reporting or misrepresenting the income, then on the basis of section 270A, the taxpayer will be held liable for penalty.
Know that under the Income Tax Act, penalty is imposed for various defaults committed by the taxpayer. Apart from penalties for non-payment of self-assessment tax, default in payment of tax, default in filing income return and others, the Income Tax Department also imposes penalty for underreporting and misreporting of income.
The department takes strict action-
According to the IT department, a penalty ranging from 50 to 200 percent can be imposed on the total amount saved from tax. According to section 270A, if wrong information is given in the income tax return, then 200 percent penalty can be imposed on the tax liability or hidden amount. On the other hand, if the separate income has been declared less due to some other reasons, then there will be a penalty of 50 percent on the liability or hidden amount. Not only this, the department has said that the employer of such taxpayers will also be informed that the person working for them is filing wrong income tax returns.
In the case of misrepresentation of income, all these things are included
- Providing or suppressing wrong information
- Failure to provide correct record of investment
- Exaggeration of deductions but failure to provide proof
- Any false entry in the account books
- Any international or Hide record of a specific transaction
The IT department has detailed various provisions and conditions for understatement or misrepresentation of income and taxpayers can visit the official website for more details.
