The income tax department has discovered a big ITR Fraud involving Rs 13 crore in IT refunds in Visakhapatnam and Rajahmundry. They previously found a scam of Rs 40 crore in Hyderabad. Tax consultants were behind the fraud, using fake documents to file tax returns without proper proof, particularly for sections like HRA, 80D, 80DD, and 80G.
The consultants made up false records and claimed refunds for medical bills using section 80DD. More than 350 high-ranking executives from pharmaceutical companies, the Visakhapatnam Port Authority, FCI, the state government, and the dredging corporation were involved in the scam.
Two consultants have been questioned so far—one in Visakhapatnam and another in Rajamahendravaram. The income tax officials have identified 10 more tax consultants in Andhra Pradesh for further investigation. These consultants targeted people with higher incomes, offering them the deceptive scheme and asking for a commission of 10 to 15 percent on each refund claim.
After reviewing four years’ worth of data, officials found both first-time claimants and repeat offenders. Legal action will be taken against the consultants and individuals involved in the scam.
Experts believe that this uncovered scam is just the beginning, suggesting the possibility of a larger refund fraud in Andhra Pradesh. The investigation will continue to uncover the full extent of the fraud.
For the latest news and updates on local affairs, follow us on Twitter at @thevizag_. Don’t miss out! Join our growing community of followers today.