(a) whether attention of the Union Government has been drawn to the
alleged irregularities made by some income tax officials in regard to
the issuing of fake income tax refund certificates as reported in the
Indian Express dated the June 9, 2005;
(b) if so, the details thereof;
(c) the number of income tax officials found to be involved therein;
(d) the action taken or proposed to be taken against them; and
(e) the steps taken or proposed to be taken to check recurrence of
such cases?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI.S.S.PALANIMANICKAM)
(a) Yes Sir.
(b) Some cases of bogus claim of refund by filing fictitious returns
of income with fictitious TDS certificates or by using stolen refund
stationery have come to the notice of the income-tax authorities at Delhi.
(c) So far, one official of the Income Tax Department has been found to be
involved in these cases detected in Delhi.
(d) The official involved in the bogus refund cases has been placed under
suspension. In addition to criminal proceedings initiated by the Police,
further action as per Central Civil Services (Classification, Control and Appeal)
Rules shall be initiated against the official after receipt of report from
Delhi Police.
(e) The steps being taken to check fraudulent claim of refunds include:
i) Implementation of Electronic Clearing System (E.C.S.) for direct credit of refund
to the bank account of the taxpayer.
ii) Instruction to the field officers to keep refund stationery in personal
custody and to send Advice Notes of refunds to clearing banks through
authorized departmental personnel.
iii) Proposal to dematerialize TDS certificates so as to preclude
possibility of claim of refund against fictitious TDS certificates.
iv) Administrative approval of Commissioner of Income Tax for issue of
high- value refunds.