The National Financial Reporting Authority (NFRA) has slapped a penalty of Rs 50 lakh, one of the highest in recent years, on a chartered accountant for professional misconduct that enabled business services provider Quess Corp to claim undue income tax deduction of almost Rs 971 crore over three years. “Thus, the work of the CA has major implications for revenue (to the government),” the NFRA said. The deductions were claimed under section 80 JJAA of the Income Tax Act, 1961. This section allows eligible enterprises a deduction of 30% on increased employee expenses for three assessment years in a row. Subsequently, NFRA looked into the professional conduct of the chartered accountants and their firms involved in the certifications that formed the basis of the income tax deduction claims.

Source: Economic Times January 05, 2024 15:41 UTC