Tax Evasion Crackdown: 90,000 Withdraw False Deductions

Approximately 90,000 salaried individuals from PSUs and the private sector have retracted incorrect tax deduction claims totaling Rs 1,070 crore by December 31, 2024. The Income Tax Department's investigations revealed a significant number of taxpayers from diverse organizations claimed unlawful deductions, prompting government outreach for compliance awareness.

In a significant development, around 90,000 salaried individuals from both Public Sector Undertakings (PSUs) and the private sector have withdrawn incorrect tax deduction claims amounting to Rs 1,070 crore, as of December 31, 2024, according to government sources.

These withdrawals follow investigative efforts by the Income Tax Department, which uncovered that many taxpayers had claimed erroneous deductions under sections such as 80C, 80D, 80E, 80G, leading to reduced government revenue.

In response, the department is conducting outreach programs with employers to promote tax compliance awareness and rectify these incorrect filing practices, securing additional tax payments from those previously filing erroneous claims.

(With inputs from agencies.)