Beware of False Claims for Deductions and Refunds

The South Central Railway, Vijayawada Division, has received a communication from the Chief Commissioner of Income Tax, Vijayawada, highlighting concerns about wrong claims towards deductions and exemptions from Income Tax and excessive refund claims by the salaried employees.

The Income Tax Department has discovered that a significant number of employees have filed false income tax returns, exaggerating their claims for deductions and exemptions to receive substantial refunds, often as high as 75-90% of the TDS (Tax Deducted at Source) amount.

Wrong claims towards deductions/exemptions from Income Tax and excess claim of refunds


Divisional Office,
Personnel Branch,

No. SCR/B/P. APO/G/BZA/Conf/2023

Dt.: 17.07.2023.

All Concerned

Sub: Wrong claims towards deductions/exemptions from Income Tax and excess claim of refunds.

Ref: Chief Commissioner of Income Tax/VJA’s Lr. No. Refunds/PCIT/VJA/2023-24, dt.14.07.23.

Chief Commissioner of Income Tax, Vijayawada vide letter cited under reference addressed to DRM/BZA, has informed that Income Tax Department verifies the correctness of returns filed by the salaried employees, it was noticed that a large section of employees have been lured into claiming refund by filing false IT returns by exaggerating their claims of deductions/exemptions, duly claiming refunds as high as 75-90% of the TDS deducted by the Accounts Department.

Field surveys also reveals that employees have taken refunds based on deductions/exemptions claimed which appear to be suspicious/incorrect and the same are under verification by the Income Tax Department.

Further, the IT Department also advised to verify the correctness of the claims of the deductions/exemptions furnished in the returns for the assessment years 23-24, 22-23 & 21-22 and to file updated/revised returns to rectify the wrong claim i.e., well before notice being issued by the Income Tax Department to the employees.

Lastly, IT Department seriously mentioned that consequences of misreporting income by claiming wrongful deductions would entail interest on additional tax, penalty @200% of additional tax and in severe cases, prosecution and imprisonment of wrong doer will also be there.

IT Department further warned that employees not be lured by tax consultants/touts and not to claim wrong deductions, in the returns being filed in future.

For any query/assistance, tax payers may contact Aauakar Seva Kendras at their local Income Tax offices and also can visit the website or call the helpline numbers 1800-103-0025/1800-419-0025.

All are requested to give vide publicity of the above mentioned points suggested by the Income Tax Department and to act accordingly.

Please treat this as URGENT & IMPORTANT.



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