Penalties for bogus tax claims

THE Income-Tax Department has warned against false claims of deductions, especially by salaried employees in Tamil Nadu.

The I-T department said there have been many instances of employees making bogus claims of deduction benefits under Sections 80DD, 80DDb and 80U of the Income-Tax Act 1961 on the basis of false certificates of medical treatment. In the case of such claims, tax payers will have to pay extra tax and also be open to penalties and prosecution.

Medical practitioners who issue such certificates can also be hauled up for the same. These sections allow deduction for expenditures incurred on medical treatment of dependent members, treatment of specific diseases and for the physically handicapped. - BL Research Bureau