Income Tax: Being cunning with the income tax will cost you heavily, you can be jailed for years..

This time, the date for filing income tax has been extended by the CBDT from 31 July 2025 to 15 September 2025. Tax filing is being investigated by the department, and the results of which are coming out. On Monday, the department said that after a large-scale action by the Income Tax Department on fake deductions and exemptions, about 40,000 taxpayers have revised their income tax returns in the last 4 months and withdrawn fraudulent claims worth Rs 1,045 crore. Through this news, let us know what the provision of punishment is if the Income Tax Department catches a case of fraud.

The Income Tax Department has intensified its investigation for the last few months, due to which 40,000 taxpayers have withdrawn fake claims of Rs 1,045 crore in the last 4 months. Campaigns are being run by the department, under which individuals and organizations taking fake deductions and exemptions are being monitored. The Income Tax Department has made strict rules for punishment for those who commit fraud.

What can be the punishment?

If someone is caught in income tax fraud, they may have to face strict punishment. The I-T department has warned that those making fake claims will be fined heavily, and legal action will also be taken in serious cases. Under the Income-Tax Act, 1961, depending on the severity of the fraud, there can be a jail term ranging from 6 months to 7 years. Also, a penalty and action to confiscate property are possible.

This is how frauds are happening
The Income Tax Department recently found in its investigation that some income tax return preparers and middlemen lured taxpayers with fake refunds for commission. These people were working in an organized manner and had filed a large number of fake claims. CBDT conducted raids in big states like Maharashtra, Tamil Nadu, Delhi, Gujarat, Punjab and Madhya Pradesh. The investigation found that many taxpayers were caught in the net of these rackets.

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