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I-T department busts fraudulent tax refund racket by IBM, Infosys, Vodafone employees

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I-T department busts fraudulent tax refund racket

The Income Tax department on Wednesday conducted searches at the premises of an unidentified CA and seized bogus claim documents of his clients.

In a major step against economic frauds, the Income Tax Department on Thursday busted a racket of extracting fraudulent tax refunds of employees of leading companies like IBM, Vodafone and Infosys with alleged collaboration of a chartered accountant (CA) in Bengaluru.

According to the I-T department, its investigation wing, on Wednesday, conducted searches at the premises of an unidentified CA and seized bogus claim documents of his clients along with WhatsApp messages.

In a statement released on Thursday, the central tax monitoring department said that the accused CA was “found to be instrumental in filing false income tax returns and making fraudulent refund claims by citing inflated or false claims of loss from house property”.

Allegedly, till date the CA has filed “nearly 1000 returns with loss from house property, aggregating to loss claim of Rs 18 crore” and the I-T department is closing monitoring the tax refunds of employees of over 50 Bengaluru-based prominent or medium-scale companies.

“It is noted that employees from some of the reputed companies such as IBM, Vodafone, Saplabs, Biocon, Infosys, ICICI Bank, CISCO, Thomson Reuters India Limited among others have also resorted to such fraudulent claim of refunds by filing revised returns of their individual income,” said the department.

Further stating that the officials have questioned many employees suspected to be involved with the racket, a senior official of the tax department said, “This is a case that is building up. Such a large-scale action in cases of employees seeking false refunds has been undertaken by the tax department for the first time.”

Officials also stated that many employees, who were quizzed by the department, claimed to have no “real loss” under the ‘income from house property’ category. Moreover, most employees have shifted the blame to the accused CA, stating that he said “he can get refunds for them by making some claims”.

“They also deposed that, out of the refund received, the auditor (CA) had charged 10% as incidental charges. Some WhatsApp messages with auditor were also shown by them, as supporting evidence,” the department said.

However, the CA claimed that he had filed the bogus claims at the “insistence of his clients”.

“Further enquiries like examination of his (CA’s) other clients and cross examination of them with the CA are being conducted. Necessary action as per law will be taken against the CA as well as the persons who have claimed wrong refunds under the provisions of Income Tax Act,” read a statement from the department.

India News

PM Modi says need to equip youth with skills in emerging technologies like AI

He acknowledged the significant contribution of youth energy to India’s advancement and reaffirmed his government’s commitment to nurturing young talent and boosting their self-confidence.

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Prime Minister Narendra Modi on Thursday emphasised the importance of adapting to the rapidly evolving world, noting that emerging needs, expectations, and future directions underscore the necessity for a modern approach in equipping young people with skills in emerging technologies like artificial intelligence and machine learning.

He acknowledged the significant contribution of youth energy to India’s advancement and reaffirmed his government’s commitment to nurturing young talent and boosting their self-confidence.

In his remarks during the ‘Veer Baal Diwas’ celebrations, Modi stated, “This era has moved beyond machines to machine learning. AI is taking centre stage, and we can see its application replacing conventional software. It is essential to make our youth future ready to tackle these challenges.” The observance of ‘Veer Bal Diwas’ honors the courage and sacrifices of Guru Gobind Singh’s four sons, esteemed figures in Sikhism.

The Prime Minister outlined that the government’s policies are focused on youth, encompassing various sectors, including the startup ecosystem, space economy, sports and fitness, fintech, manufacturing, skill development, and internship programs.

He highlighted that the new National Education Policy is designed to modernize education, facilitating expansive learning opportunities.

Additionally, Modi announced the launch of the ‘Suposhit Gram Panchayat Abhiyan,’ aimed at fostering healthy competition among village panchayats to eliminate malnutrition, thus laying the groundwork for a developed India. He encouraged the youth to excel in their respective fields, whether in railways, semiconductors, travel, or astronomy.

The Prime Minister highlighted that youth power is at the forefront of driving revolutions across various fields, including startups, science, sports, and entrepreneurship. He emphasised that all government policies—whether related to the startup ecosystem, the future of the space economy, the sports and fitness sector, fintech and manufacturing industries, or skill development and internship programs—are designed with a youth-centric focus to benefit young people.

During the Veer Bal Diwas ceremony, Modi paid tribute to the “unparalleled” sacrifices of Guru Gobind Singh’s sons, the Sahibzadas, who chose “unwavering courage and faith over submission to the Mughal Empire’s oppression.” He remarked that the government established this day of remembrance to honor the bravery of the Sahibzadas, stating, “Their legacy continues to inspire.”

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Mahatma Gandhi’s legacy under threat from Modi government: Sonia Gandhi

Approximately 200 leaders, including CWC members, special invitees, party officials, and former chief ministers, convened for the Congress meeting in Belagavi.

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Congress Parliamentary Party (CPP) chief Sonia Gandhi on Thursday said Mahatma Gandhi’s legacy is under threat from those in power in New Delhi and the ideologies and institutions that have nurtured them. She urged the party workers to bolster their commitment to addressing these challenges with determination.

As the Congress Parliamentary Party Chairperson, Gandhi slammed the Narendra Modi government and the RSS, urging action against the forces she accused of fostering the toxic environment that contributed to Mahatma Gandhi’s assassination.

“It was a transformative moment in our nation’s history. Today, we recommit to honoring, safeguarding, and advancing the legacy of Mahatma Gandhi, who has always been and will remain our fundamental source of inspiration,” she stated.

“His influence shaped and guided the remarkable leaders of his time. However, his legacy now faces threats from those in power in New Delhi, along with the ideologies and institutions that support them,” she continued in her message.

“These organisations never stood for our freedom; they vehemently opposed Mahatma Gandhi and are responsible for creating a toxic environment that led to his assassination. Furthermore, they celebrate his assassins,” Gandhi asserted.

She highlighted that “Gandhian institutions across the nation are under assault” and expressed that it is fitting for this meeting to be named Nava Satyagraha Baithak. She called for a renewed determination to confront these forces with all available strength.

Additionally, she encouraged party workers to unite and tackle the challenges ahead with urgency and renewed enthusiasm.

Congress President Mallikarjun Kharge, also speaking at the meeting, accused the BJP of disrespecting freedom fighters, particularly B.R. Ambedkar. He alleged that Prime Minister Narendra Modi and his administration refuse to acknowledge the error made by Home Minister Amit Shah regarding his “extremely insulting” comments about Ambedkar.

In response, the BJP condemned the Congress’s gathering, labeling the Belagavi session as a “monumental mockery of the principles of Mahatma Gandhi.” Senior BJP leader C.R. Kesavan remarked that “Rahul Gandhi’s Congress stands in stark opposition to Mahatma Gandhi and his ideals.”

Approximately 200 leaders, including CWC members, special invitees, party officials, and former chief ministers, convened for the Congress meeting in Belagavi.

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China gives nod to build world’s largest dam on Brahmaputra close to Indian border

The investment in this dam could surpass one trillion yuan (approximately $137 billion), significantly overshadowing all other single infrastructure projects, including China’s own Three Gorges Dam, which is currently recognized as the largest in the world.

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China has given its nod to construct the world’s largest dam, termed the most significant infrastructure project globally, with an estimated cost of $137 billion, located on the Brahmaputra River in Tibet near the Indian border, raising alarms for neighboring countries, particularly India and Bangladesh.

The Chinese government announced its decision to develop a hydropower project in the lower reaches of the Yarlung Zangbo River, which is the Tibetan nomenclature for the Brahmaputra.

The dam will be sited at a substantial gorge in the Himalayan region where the Brahmaputra river makes a notable U-turn, flowing into Arunachal Pradesh before reaching Bangladesh.

The investment in this dam could surpass one trillion yuan (approximately $137 billion), significantly overshadowing all other single infrastructure projects, including China’s own Three Gorges Dam, which is currently recognized as the largest in the world.

China had previously operationalised the $1.5 billion Zam Hydropower Station, the largest in Tibet, back in 2015. This Brahmaputra dam project forms part of the 14th Five-Year Plan (2021-2025) and is aligned with broader National Economic and Social Development goals and Long-Range Objectives set out through 2035, as established by the Communist Party of China’s key policy-making body in 2020.

Concerns have been raised in India, as the dam would allow China not only to manage water flow but also potentially to release significant water volumes, which could inundate border areas during hostilities. In parallel, India is also pursuing the construction of a dam on the Brahmaputra in Arunachal Pradesh.

In 2006, India and China instituted the Expert Level Mechanism (ELM) to address various matters related to trans-border rivers, which involves China providing hydrological data regarding the Brahmaputra and the Sutlej rivers during the monsoon seasons.

Discussions on data sharing related to trans-border rivers were highlighted in recent talks between the Special Representatives for border issues in India and China, NSA Ajit Doval, and Chinese Foreign Minister Wang Yi, which took place on December 18.

The proposed Brahmaputra Dam presents substantial engineering hurdles, situated along a tectonic plate boundary known for seismic activity. The Tibetan Plateau, often referred to as the “roof of the world,” is susceptible to earthquakes because of its location over tectonic plates.

An official statement released on Wednesday attempted to alleviate fears concerning seismic risks, asserting that the hydropower project is designed to be safe and emphasizes ecological protection.

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