2024-04-05 05:09:16
With the beginning of the new financial year, while lakhs of honest taxpayers are busy preparing to submit proof of investment and income tax returns, fraudsters are using various forms ranging from fake tax notices to ‘urgent’ letters to trick you into handing over personal information. ‘Use tactics like phishing emails. Head of Risk Services in South Asia, Visa India Vipin Surelia Let us tell you some practical suggestions, by following which people can avoid this type of fraud.
What is ITR?
ITR means Income Tax Return. It is a tax return form used by income tax payers to report their income and assets to the Income Tax Department. It contains details related to personal and financial data of tax paying people. ITR is mostly filled in electronic mode. However, for senior citizens and some other categories, there is an option to file it manually also.
The number of people filing ITR is increasing
According to Central Board of Direct Taxes (CBDT) data, 7.78 crore income tax returns (ITR) were filed in FY 2022-23. This figure was Rs 3.80 crore in FY 2014-14. This means that in just 10 years there has been a huge increase of 104.91 percent in the number of ITR filings. According to State Bank of India, 82 million ITRs have been filed for assessment year 2024 till December 31, 20231, and this number is expected to exceed 85 million by the end of the financial year. This also opens up many opportunities for scammers to target taxpayers. Such emails and messages are prepared for them so that they can be duped by making them feel the lack of monitoring and necessity.
Beware of fake IT notices and calls
Cyber criminals often send fake notices through text messages and emails, posing as Income Tax Department officials. If you receive an email from someone claiming to be authorized by the IT department, or directing you to an IT website, you do not need to respond to it. Do not open any attachments as they may contain malicious code that can infect your computer. Before taking any hasty action, verify the authenticity of the notices which say ‘overdue’ or ‘padding’. Check the authenticity of all the IT department notices through “Authenticate Notice” by visiting www.incometax.gov.in portal.
Use secure payment methods
While making online tax payment, opt for secure payment methods like credit card or debit card. If you choose this option then it comes with additional security features like card tokenisation. This feature prevents third party vendors from sharing your personal data. Also, this facility comes with robust redressal mechanisms.
Enable Alerts
Set up transaction alerts on your card or payment app to receive notifications of any suspicious activity. Review your account details regularly and report any unauthorized transactions. With this, if there is any fraudulent attempt on your account, you will get an immediate alert.
Verify request
Before doing any transaction, do not blindly follow any payment request that comes. Before making payment, ensure its authenticity. Especially if they come from unexpected, unknown sources and appeal to unnecessary urgency or threaten legal action.
Keep personal information confidential
You may have got debit cards in lieu of credit cards or bank accounts. There is some confidential information related to those cards. Like PIN or CVV number, card expiry date. Avoid sharing these sensitive information with anyone. Use secure e-filing services, avoid public WiFi networks, and activate two-factor authentication for added security.
Remove personal information from untrusted websites
The government keeps making people aware from time to time about some suspicious data broker sites. Protect your privacy by removing your information from these sites. Data broker sites collect information from your public records, loyalty programs, and apps. Sharing your data on such sites invites privacy and financial risks.
Secure your system
You can protect yourself from phishing emails containing harmful software by installing anti-virus software, anti-spyware, and a firewall on the machines you use. By using these tips and being fully informed, you can significantly reduce the risk of becoming a victim of a tax scam and ensure the security of your finances and personal information.