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RaviSK (engineer)     20 January 2011

Income tax savings proofs -80C

My friend is a salaryed employee of 8 lacks per annum.

Last week he subimitted 75 thousands rupees of ficticious proofs of linsurance policies and other bonds.

(He had taken the doucuments of  his friend  changed the name and submitted to the tax officials.)

How does he would be effected if it was cross verified

Do the income tax officials cross verify all proofs which were submitted.

What was the fine/punishment if  found guilty.








 2 Replies

KAMAL SONI (Banker)     20 January 2011

Albeit now a days in order to promote online filing of return and to speed up refund process IT dept. is processing returns on good faith basis declaration furnished by Assesse without seeking any kind of documenty poof.Apart from it day by day IT dept. is getting technically sound and is obtaining reports from Banks,Insurance companies,Broking houses for investments and HV txns made by its customers.Till time such malpractices were prevailing in our country and because of lack of systems the persons envolved were not caught but with advance systems and technologies tracing of such kind of wrong declarations is not difficult. The brief details of penalties and prosecutions can be accessed at following link .

Apart from the penalties mentioned in the provided link, wilful attempt to evade taxes, wilful failure to furnish returns of income and making a false statement in any verification are punishable offences for which prosecution(s) can be launched under IT Act, 1961 and / or under the Indian Penal Code.


Has  your friend filed the documents with the AO on the specific instructions of the AO through a notice. Because under the IT Act no proof is required to be submitted with the return and only on demand from the dept the same has to be produced.

The IT Act contains many sections to take care of such false and fabricated documentary proofs to evade tax. For eg- u/s.148 notice is issued when the AO  has reason to believe that income has escaped assessment.

Then there is u/s.153A assessement in case of search or requistion.

      The penalty is opening of assessment , bring the espcaped income to tax, penalty. There is provisions for regorous imprisonment for a term upto 2 yrs, etc etc.

Hence your friends forging documents is not a good thing to do also because the AO can open earlier periods also and your friend will get  trapped!!!!!!!!

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