Income Tax Department to Verify 'High-Risk' Refund Claims for AY 2024-25 Using SOP

The Income Tax Department will implement a systematic process to verify ‘high-risk’ refund claims filed for the assessment year (AY) 2024-25, which corresponds to the financial year ending March 31, 2024. Following a standard operating procedure (SOP) issued by the directorate of IT systems under the Ministry of Finance, the department aims to identify and investigate fraudulent refund claims that may have been made either individually or as part of an organized effort. The verification process will particularly focus on cases where multiple income tax returns (ITRs) have been filed using the same email address and show a pattern of false claims. Common fraudulent practices include false HRA claims, bogus donations under Section 80G, and inflated expenses. If these patterns are detected, further investigation will be initiated. The SOP’s primary goal is to ensure the legitimacy of refund claims without causing undue harassment to taxpayers. Taxpayers are advised to ensure that all claims made in their returns are legitimate and supported by proper documentation.