Income Tax Notice Under Section 133(6) to Government DDOs: What Employees & Officers Must Know

 In a significant compliance move, the Income Tax Department (Investigation Wing) has issued notices under Section 133(6) of the Income-tax Act, 1961 to several Government Drawing & Disbursing Officers (DDOs) across departments.

This action has raised concern among government employees, especially those who claimed large income tax refunds for FY 2022–23.

Let’s understand what triggered this notice, what the department is investigating, and what government employees must do next.

What Is Section 133(6) of the Income-tax Act?

Section 133(6) empowers the Income Tax Department to seek information, documents, and verification from any person, authority, or institution for investigation purposes.

In this case, the notice has been issued to DDOs, not directly to employees — but the impact squarely falls on salaried government officers.

Why Has the Income Tax Department Issued This Notice?

The Investigation Wing conducted a review of Income Tax Returns (ITRs) for FY 2022–23 filed by government employees who received salary through DDOs.

During this review, the department observed:

• Unusually high income tax refunds

• Claims of deductions, exemptions, and expenses that appeared abnormal

• Refunds arising mainly due to employee declarations accepted by DDOs for TDS purposes

This triggered a deeper verification exercise.

What Did the Department Find?

According to the notice:

• Multiple government officials claimed substantial tax refunds

• Many claims were based on questionable or inflated deductions/exemptions

• Details of such officials have been listed in Annexure-A attached to the notice

These findings raised red flags about the authenticity of claims used while computing TDS on salary.

Why Is the DDO Involved?

Under the income tax law, DDOs deduct TDS on salary based on declarations submitted by employees.

However, the department now expects the DDO to verify whether those declarations were genuine and supported by evidence.

The notice specifically asks the DDO to:

• Furnish complete salary and TDS records

• Verify the authenticity of deductions/exemptions claimed

• Submit supporting documents for all officials named in Annexure-A

In short, blind reliance on employee declarations is no longer acceptable.

What Does This Mean for Government Employees?

Even though the notice is issued to DDOs, employees are equally accountable.

If deductions claimed are found to be:

• Fake

• Inflated

• Unsupported by valid documents

Then employees may face:

• Reversal of refunds

• Demand notices

• Interest under Sections 234A/B/C

• Penalties for misreporting of income

• In serious cases, scrutiny or prosecution

Key Lessons for Salaried Taxpayers

✔ Claim only genuine deductions and exemptions
✔ Maintain proper documentary evidence
✔ Do not submit false declarations just to reduce TDS
✔ Remember: Refund today can become a notice tomorrow

Compliance Is Protection

The Income Tax Department is increasingly using data analytics, AIS, TDS records, and salary information to detect inconsistencies.

This action sends a clear message:

“Compliance today prevents investigation tomorrow.”

This development is a strong reminder that tax compliance is not optional — even for salaried government employees.

If you have claimed deductions in the past:

• Recheck your documents

• Match your ITR with AIS & Form 26AS

• Rectify mistakes before the department contacts you

Staying compliant is always cheaper than facing scrutiny.

#IncomeTaxNotice  #Section133(6) #IncomeTaxDepartment #TaxManthan #IncomeTaxIndia #DDOIncomeTax #GovernmentEmployeesTax #SalaryTDS #IncomeTaxRefund #TaxScrutinyIndia #IncomeTaxInvestigation #TaxCompliance #ITRVerification #TaxAwareness #SalariedTaxpayers #IndianTaxSystem