If you also pay Income Tax, then this news is very useful for you. While filing ITR (Income Tax Return) (ITR Filing 2025), many such mistakes are made, which can later put you in legal trouble. Many people make false claims to the Income Tax Department to reduce their tax, due to which their tax is reduced, and they also get a refund. But, if you also want to get an income tax refund by filling out wrong information, then it can prove dangerous for you.
If you make fake claims while filing ITR, then the Income Tax Department can take strict action against you in case of tax evasion under the Income Tax Act 1961. This can get you badly entangled in legal trouble.
What action does the Income Tax Department take for making false claims
If you have shared false information while filing ITR and taken an exemption, then it can prove to be very dangerous for you. Action can be taken against you under Section 271(1)(c) of the Income Tax Act for giving wrong information. Under this, you may have to pay a heavy fine ranging from 100% to 300%. Not only this, you may also have to pay interest on it. This will increase your financial burden manifold.
If you think that the department does not know whether you are giving correct or incorrect information while filling out the ITR, then you are misunderstanding. Because the department has complete details of the taxpayers. If the department suspects you, it can re-examine your return and take strict action against you if any mistake is found. Their data analytics capabilities are now very advanced.
Making false claims can also lead to jail
You need to be more cautious, knowing that making false claims can lead to not only a fine but also jail. The Income Tax Department can take action against you under Section 276C and 277 of the Income Tax Act. And under this, you can also be sentenced to jail from 6 months to 7 years. This shows how serious a crime income tax evasion is considered.
Take these precautions while filing ITR
To avoid legal troubles and be a responsible citizen, keep these things in mind while filing your ITR. Always fill in correct and complete information. Avoid hiding or misrepresenting any kind of information. Keep all your income and expenditure-related documents safe.
Be ready to present them in the future when asked by the department. If you have any doubts about filing ITR, take the help of a professional tax consultant or chartered accountant. They will guide you properly and save you from mistakes. Have general knowledge about the various sections of the Income Tax Act and their provisions.