Why you should not ask for maximum refund in ITR ?

We all file Income tax return annually however these days people do fall for maximum refund promise by a tax return preparer. Tax payers also consider multiple tax preparer based on the refund offered by each of them.

"Tax Act or the law is same for all. Any tax preparer offering you higher refund may also indicate there is something illegal followed to fish you as client"

Choosing a tax preparer solely based on their promise of maximum refund can be risky for several reasons. Here are a few important points to consider:

1. Ethical concerns:

Tax preparers who promise maximum refunds may engage in unethical practices to achieve that goal. They might manipulate your financial information, inflate deductions, or misrepresent your income to the tax authorities. These practices are illegal and can lead to serious consequences, including fines, penalties, and even criminal charges for both the preparer and the taxpayer.

2. Accuracy and compliance:

Focusing solely on maximizing refunds often takes precedence over accuracy and compliance with tax laws. Tax returns prepared with the primary goal of increasing refunds may contain errors or omissions, leading to potential audits and penalties in the future. It's important to choose a tax preparer who prioritizes accuracy and adherence to tax regulations.

3. Tax planning and long-term considerations:

A tax preparer should provide comprehensive tax planning and advice that takes into account your financial situation, goals, and potential future implications. Maximizing refunds in the short term may not align with your long-term tax planning objectives, such as minimizing tax liabilities or optimizing deductions in a legal and sustainable manner.

4. Responsibility and accountability:

Ultimately, you, as the taxpayer, are responsible for the accuracy and completeness of your tax return. Even if a tax preparer makes a mistake or engages in fraudulent activities, it's you who will bear the consequences. Choosing a reputable tax professional who prioritizes compliance and accuracy will help minimize the risk of errors and potential legal issues.

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It's important to exercise caution and conduct due diligence when selecting a tax preparer.
Do not hire a tax preparer for monetary benefits ( max tax refund ), it will trap you in risky compliance cycle for future, income tax department has multiple years in hand to issue a notice for unlawful tax practice.