Answer

1. F

   Facts

   Claims based on false documents fall under misreporting, with penalty of 200% of the tax, and can lead to prosecution. The department has run campaigns against bogus deductions and donations. Coming clean early is the safest route.

2. P

   Provisions and law

   • Sec 270A (now Sec 439)Penalty of 50% of tax on under-reported income, or 200% where under-reporting is due to misreporting
   • Sec 276C (now Sec 478)Prosecution for wilful attempt to evade tax
   • Sec 270AA (now Sec 440)Immunity from Sec 270A penalty and prosecution on paying tax and interest and not appealing
3. A

   Analysis

   If no assessment has started for a year, an updated return withdrawing the false claims and paying tax with additional tax protects you from penalty on that income. If an order is already passed charging misreporting, immunity under the amended Sec 270AA, with 100% additional tax, can avoid the 200% penalty and prosecution. For a fake claim of ₹2,50,000 with tax effect of ₹78,000, that is the difference between ₹1,56,000 of penalty and ₹78,000 of additional tax. Report the agent and do not use such services again.

4. C

   Conclusion

   1. 1List each year where false claims were made
   2. 2For years without proceedings, file ITR-U withdrawing the claims
   3. 3For years with an order, consider immunity in Form 68 within the deadline
   4. 4Keep records of the agent and report the fraud to the department

Agents promising refunds with no documents put you at risk of 200% penalty and prosecution.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.