What happened if you claimed more deductions in your ITR to get more refund

An example of a notice is here which can be seen on your email:

Claiming more deductions on your income tax return (ITR) than you are eligible for is considered tax fraud and is illegal. Here’s what can happen if you knowingly or mistakenly claim more deductions than you are entitled to:

  1. Audit Risk: The tax authorities may flag your return for a closer examination or audit. During an audit, they will review your financial records, receipts, and supporting documents to verify the accuracy of your deductions. If they find that you have falsely claimed deductions, you may face penalties and interest charges.
  2. Penalties and Interest: If the tax authorities determine that you have intentionally or negligently claimed false deductions, you can face penalties. These penalties can be substantial and may include fines as well as interest charges on the additional taxes owed.
  3. Refund Rejection: If you file a return with exaggerated deductions in an attempt to get a larger refund, the tax authorities may reject your refund claim or delay the processing of your return until they can investigate further.
  4. Legal Consequences: In some cases, deliberately making false claims on your tax return can result in criminal charges. Tax evasion is a serious offense that can lead to fines and imprisonment.
  5. Loss of Trust: Falsifying deductions can damage your credibility with the tax authorities. This can lead to more scrutiny of your future tax returns and potentially increased difficulties in dealing with tax matters.

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