Soon taxpayers will be under even more scrutiny. On 16 April 2018, the income tax department warned taxpayers that if they under-report incomes or inflate deductions while filing their income tax returns (ITR), they will be in trouble, with a capital T.
The department especially advised salaried taxpayers to stay away from intermediaries, who suggest illegal ways to bring down tax liability. Often, intermediaries help reduce the tax burden by helping taxpayers arrange fake rent agreements and slips, medical bills, donation receipts and so on. The tax department warned that if a taxpayer is found using such illegal means to reduce the taxes, the department can take strict action, including a penalty and even a jail term.
