The Kashmir Pulse

NEW DELHI — The Income Tax Department on Tuesday asked taxpayers to link PAN with Aadhaar by May 31 to avoid tax deduction at a higher rate.

As per income tax rules, if a Permanent Account Number (PAN) is not linked with a biometric Aadhaar, TDS is required to be deducted at double the applicable rate.

Last month, the Income Tax Department issued a circular, stating that no action will be taken for a short deduction of TDS in case the assessee links his/her PAN with Aadhaar by May 31.

“Please link your PAN with Aadhaar before May 31, 2024, if you haven’t already, in order to avoid tax deduction at a higher rate,” the department posted on X.

In a separate post, the I-T department asked reporting entities, including banks, forex dealers, to file SFT by May 31 to avoid penalties.

“The deadline to file SFT (Statement of Specified Financial Transactions) is May 31, 2024. Avoid penalties by filing accurately and on time,” the department said.

The reporting entities which are required to file SFT returns with tax authorities include forex dealers, banks, sub-registrar, NBFC, post offices, issuers of bonds/debentures, mutual fund trustees, companies paying dividends or buying back shares.

These specified institutions are required to furnish the details of certain financial transactions or any reportable account registered/recorded/maintained by them during the year.

Delay in filing of SFT returns may attract a penalty of up to Rs 1,000 for each day of default. Non-filing or filing inaccurate statements may also lead to a levy of a penalty.

Through SFT, the Income Tax Department keeps track of high-value transactions undertaken by an individual.

This post first appeared on The Kashmir Pulse

SRINAGAR — Congress on Monday staged strong protest demonstrations against 'tax terrorism' unleashed against the principal opposition (INC) by the IT Department, terming the move politically motivated and fabricated aiming to stop INC from campaigning after the BJP sensed defeat before the ensuing Lok Sabha elections.

The leaders and workers raised slogans against 'tax terrorism' by the IT Department against INC and termed it a deliberate move to stop the Congress party from campaigning during the ensuing Lok Sabha elections. They also displayed play cards demonstrating their anger against the coercion, and vendetta politics against the opposition, especially Congress and leaders of the INDIA alliance.

They said BJP has sensed defeat before the ensuing Lok Sabha elections. As a result, various agencies, especially ED and IT, have been deputed to threaten and stop the Opposition from campaigning under the garb of 'tax terrorism' and various other undemocratic measures the BJP is adopting out of fear and frustration, but the Congress said it won’t stop and it will continue fighting against BJP’s autocracy and will defeat it (BJP) in the elections.

Speaking on the sidelines of the protest, Congress leaders blamed the BJP for vitiating the political atmosphere in the country for the lust of power, but the Congress is strong enough to defeat the war against democracy, adding that the BJP has deputed agencies to strangulate the strong and genuine voices, but that will not stop its (BJP’s) defeat in the elections.

They further said that freezing accounts and imposing huge taxes won’t deter the Congress party from fighting and campaigning against the BJP’s wrong policies. BJP could not digest the strength and popularity Congress party is enjoying given the people’s love and affection. As a result, it (BJP) is desperate enough while having realized that the day is not far when it (BJP) will be out of power, they said.

JKPCC General Secretaries Waseem Ahmad Shalla, Irfan Naqashbandi, and DCC Srinagar President Imtiyaz Khan led the protest while other senior leaders including frontal organizations also participated.

Later, JKPCC Senior Vice President Mohammad Anwar Bhat also joined the protest and briefed the media about the BJP’s coercion, diversionary tactics and vendetta politics unleashed against the opposition.

This post first appeared on The Kashmir Pulse

SRINAGAR — The Income Tax Department, Srinagar has taken a serious view of the bogus refunds claimed by various persons in the past few years. The department has filed two FIRs against one Chartered Accountant and 404 other persons in Jammu & Kashmir in bogus refund cases.

The FIRs have been filed by Akash Kumar Meena, Income Tax Officer (Technical), Srinagar with the Crime Branch of Jammu & Kashmir Police at the direction of the Principal Commissioner of Income Tax, Jammu & Kashmir and Ladakh, M.P. Singh based on the investigation carried out by the Income Tax Officer (TDS), Srinagar.

It has been alleged in the FIRs that 404 persons including a Chartered Accountant who runs a firm from Raj Bagh Srinagar have entered into a conspiracy and defrauded the Central government exchequer for a sum of Rs 16.72 crores between financial years 2017-18 to 2019-20.

In the FIRs addressed to the Senior Superintendent of Police, Crime Branch, Srinagar, the Income Tax Department has described the modus operandi of the accused in minute details and has shared their complete details with the crime branch like names, addresses, PAN, bank accounts and the amounts fraudulently claimed as refunds by filing incorrect Income Tax Returns in a clandestine manner.

It has been alleged that all the culprits have taken more than Rs 4 lakhs as refunds by filing incorrect Income Tax Returns for various years. All 405 persons have been booked under sections 420/468/471 and 120B of the IPC & RPC read with section 66-D of the I.T. Act.

It is learnt from reliable sources that Special Investigation Team (SIT) headed by Imtiyaz Ahmed, Dy. Superintendent of Police, Crime Branch, Srinagar has been constituted at the direction of Special Director General of Police (Crime), Jammu & Kashmir for further investigation in the matter. It is also learnt that the Crime Branch sleuths have seized all bank accounts of the accused persons and further investigation is in progress.

The Income Tax Department of Jammu & Kashmir has also filed one complaint against the CA Imran Amin Dara of Srinagar to the Institute of Chartered Accountants of India. In a letter dated 24.05.2023, Akash Meena, Income Tax Officer, Technical has requested the Director Discipline of ICAI to cancel the license of the said CA.

Last year, in the month of November, the Income Tax Department of Jammu & Kashmir had undertaken an analysis of refunds claimed by the taxpayers by claiming bogus deductions. It was found that a large number of salaried employees of Jammu and Kashmir have claimed bogus deductions under various sections of the Income Tax Act with the help of some touts. Such government employees are from different departments like PDD, Health, Tourism, Education, Police, J&K Bank, universities, and even some belt forces.

At the request of the Income Tax Department, various UT departments issued advisories in the month of March to their employees to update their Income Tax Returns and file ITR-U in case they have claimed bogus refunds.

It is learnt from reliable sources that more than 9000 employees had updated their returns before March 31 and refunded the excess amounts of refunds to the government along with additional tax, totaling more than Rs 56 crores. However, it is in the notice of the I.T. Department that many employees have not updated their returns and have not returned the fraudulently earned refunds to the government with additional tax (penalty).

Reliable sources have indicated that such persons will be dealt with strictly as per the law in the coming months. Their cases are also likely to be selected for scrutiny in the near future and more FIRs are likely to be filed against such employees and the touts who are active in the UT of Jammu & Kashmir.

A senior officer of the I.T. Department, on the conditions of anonymity, has revealed that more than 20,000 employees of the UT government and more than 8,000 personnel belonging to various other belt forces are on the radar of the Tax Department for fraudulently claiming income tax refunds for the years 2020-21 and 2021-22 for which return filing dates are over.

The Principal Commissioner of Income Tax, M.P. Singh said that the taxes paid by the citizens are used for development of the infrastructures like roads, bridges, tunnels, rail lines, schools, colleges, and hospitals.

"The department respects honest taxpayers for their significant role in nation-building but will deal firmly with dishonest taxpayers and such elements who misguide the public and help them in tax evasion and bogus refund claims," he warned.

This post first appeared on The Kashmir Pulse