NEW DELHI: The Income Tax Department has flagged numerous employees of the Centre-run Ram Manohar Lohia (RML) Hospital for allegedly filing bogus claims to secure deductions and exemptions on their taxable income.
Officials have directed them to withdraw such claims and pay the revised tax along with interest, cautioning that failure to comply could attract hefty penalties and prosecution.
According to a communication issued by the department to the hospital authorities, the inquiry revealed that “numerous employees of your office have made bogus claim of deductions/exemptions in their return of income for various assessment years.”
It noted that the employees declared one set of figures to the hospital for Tax Deducted at Source (TDS) while later inflating claims in their returns to seek refunds.
“The above action on the part of the employees have been carried out by claiming bogus deductions/exemptions over and above to what was declared before you for the purpose of effecting TDS on their salaries. Subsequently they have benefited ineligible refunds,” the department said in its letter.
Officials said such cases are prima facie liable for penalties and prosecution under the Income Tax Act, 1961. Hospital authorities have been asked to sensitise employees about the consequences and to advise them to file updated or revised returns after withdrawing false claims.
The department has warned that those who do not rectify their returns will face serious consequences. It added that employees could face penalties amounting to 200 per cent of the evaded tax for misreporting income and prosecution under Section 276C of the Act, which provides for rigorous imprisonment ranging from three months to two years along with a fine.
The hospital, in turn, has issued a circular to its staff asking them to rectify their filings before the September 1 deadline.
"All the officers and officials are requested that who so ever has claimed the bogus exemption/deductions in the return of income for ineligible refund must file their Updated Return/Revised Return after withdrawing all such bogus claims and pay tax and interest as applicable on or before 01.09.2025 under intimation to DDO, ABVIMS,” the circular stated.