Income tax return 2025: Income Tax Department can send these tax payers to jail with penalty, know the reason

Income tax return 2025: Section 276C of the Income Tax Act, 1961 states what steps the Income Tax Department can take against taxpayers if their mistake is proved. These include claiming wrong deductions, using fake receipts or certificates for deductions, and action to be taken for not disclosing any income in the income tax return.

The income tax return filing season has started. However, this time taxpayers have got more time to file returns. Taxpayers can file ITR till September 15. Usually the deadline for filing returns is July 31. Tax experts say that even though the Central Board of Direct Taxes (CBDT) has extended the deadline, taxpayers should not wait for the last date to file returns. The reason for this is that you may make a mistake in haste in filing returns near the deadline, for which you may have to pay a big price.

Be careful in filing returns

The Income Tax Department wants to bring more and more people under compliance. For this, it is continuously strengthening its monitoring system. It keeps an eye on the high value transactions of people. If the department feels that a taxpayer’s high value transaction does not match his income, then it sends a notice to the taxpayer. Therefore, you need to be very careful in filing income tax returns. You have to keep in mind that it is necessary to declare every income, big or small, in the return. If you make a profit by investing in cryptocurrency, then you will have to declare it in the return.

Revised return can be filed in case of mistake

A partner of a tax consultancy firm said, “You should be very serious about income tax return. Before filing the return, you should gather complete information about all your income. If you forget to mention any income in the return, then later you may get a notice from the Income Tax Department. If the department feels that you have done this intentionally, then you can get into big trouble.”

Taxpayers may have to pay penalty

Section 276C of the Income Tax Act, 1961 states what steps the Income Tax Department can take against a taxpayer if his mistake is proved. These include claiming wrong deduction, using fake receipt or certificate for deduction, action to be taken for not mentioning any income in the income tax return. According to this section, if the taxpayer is found guilty, he may have to pay a penalty of up to 200 percent of his tax liability. Not only this, he may also have to go to jail.

Deliberate mistake can also result in jail sentence

Section 276C states that if a taxpayer deliberately evades tax and the amount of evasion is more than Rs 100000, then he can be sentenced to jail. Initially the punishment will be for 6 months, but later it can be increased to 7 years. Also, a penalty can be imposed on the taxpayer. Tax experts say that if a taxpayer inadvertently forgets to disclose any income, then he need not fear. If he remembers it, he can file a revised return. If you do not remember even later and the Income Tax Department sends you a notice, then you can tell the department the right thing.

The post Income tax return 2025: Income Tax Department can send these tax payers to jail with penalty, know the reason first appeared on informalnewz.

News