Income Tax Department Issues Warning to J&K Government Employees

Income Tax Department Issues Warning to J&K Government Employees

The Income Tax Department has issued a stern warning to employees across various government sectors in Jammu and Kashmir, including the police department, for allegedly partaking in widespread fraudulent refund claims.

The principal commissioner of income tax for J&K and Ladakh brought attention to the matter, prompting the finance department to release a circular urging defaulting employees to submit updated income tax returns (ITRs) and retract erroneous claims immediately.

According to the communication, a majority of employees from sectors such as education, health, power, public health engineering, cooperatives, sports, tourism, industry, public works, and police have been identified for claiming excessive deductions under various sections of the Income Tax Act. These deductions were deemed inappropriate for their income profiles.

The Income Tax Department emphasized the severe repercussions of such fraudulent actions, including potential imprisonment ranging from three months to seven years, hefty fines, and the attachment of bank accounts to recover the falsely claimed amounts.

Moreover, defaulters could face detailed scrutiny leading to the imposition of taxes, penalties up to 200% of the evaded tax amount, and interest charges.

Non-compliance with the department’s directives could result in penalties of Rs 10,000 per violation. Defaulter employees are urged to submit updated ITRs, withdraw incorrect claims, and settle outstanding taxes to avoid coercive measures.

The department has set a deadline for filing updated ITRs for the financial years 2020-21, 2021-22, and 2022-23. Employees are advised to file their updated ITRs promptly to evade show cause notices or scrutiny, as delays could lead to additional tax liabilities.

In response to the communication, Santosh D Vaidya, Principal Secretary of the Finance Department, issued a circular to all administrative secretaries and department heads, instructing them to disseminate advisories.

Additionally, drawing and disbursing officers are tasked with ensuring that defaulting employees comply with the directive by submitting updated ITRs and rectifying any erroneous claims.