ITR

Campaign about wrong deduction claims

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Find

The department has run campaigns asking taxpayers to review deduction claims that do not match its data, such as donations to unrecognised bodies. If a claim was wrong, withdrawing it through a revised or updated return reduces the risk of penalty.

Provisions

Sec 270A, Income-tax Act 1961 (now Sec 439, Income-tax Act 2025); Sec 139(5), Income-tax Act 1961 (now Sec 263(5), Income-tax Act 2025); Sec 139(8A), Income-tax Act 1961 (now Sec 263(6), Income-tax Act 2025)

Analysis

Check each deduction against real receipts and payment proof. If a claim is genuine, keep the receipt and bank proof ready. If it was claimed without a real payment, withdraw it by revising or updating the return and pay the tax. Misreporting can attract a penalty of 200% of the tax, so a voluntary fix is far cheaper.

Close

  1. List every deduction claimed and match it to proof.
  2. Keep genuine claims and their documents ready.
  3. Withdraw wrong claims through a revised or updated return.
  4. Respond to the campaign after the fix.

Do not rely on agents who promise refunds through deductions you did not pay for.

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