The Income Tax Department on Monday launched large-scale search operations across the country targeting individuals and entities accused of facilitating fake tax deductions.
Raids are currently underway at more than 200 premises linked to people who allegedly helped taxpayers claim false deductions under various heads, including political donations, tuition fees, and medical expenses.
One of the primary areas of focus in this operation involves deductions claimed under Section 80GGC, which allows contributions to registered political parties to be deducted from taxable income.
Investigators allege that several intermediaries have been arranging bogus donations—sometimes routed through unregistered or dubious entities—to help taxpayers artificially lower their tax liability.
Apart from political donations, the raids are also targeting networks accused of enabling fraudulent claims on tuition fees, medical reimbursements, and other deductible expenses.
The searches are part of a nationwide effort to curb the widespread misuse of deductions under the old tax regime. Officials said many taxpayers have been exploiting the convenience of paperless income tax return filings to inflate claims without adequate documentation.
The action comes on the heels of the department’s recent “NUDGE” campaign, in which taxpayers were informed of suspicious or unsupported deductions in their returns and were advised to file revised or updated returns.
Raids are currently underway at more than 200 premises linked to people who allegedly helped taxpayers claim false deductions under various heads, including political donations, tuition fees, and medical expenses.
One of the primary areas of focus in this operation involves deductions claimed under Section 80GGC, which allows contributions to registered political parties to be deducted from taxable income.
Investigators allege that several intermediaries have been arranging bogus donations—sometimes routed through unregistered or dubious entities—to help taxpayers artificially lower their tax liability.
Apart from political donations, the raids are also targeting networks accused of enabling fraudulent claims on tuition fees, medical reimbursements, and other deductible expenses.
The searches are part of a nationwide effort to curb the widespread misuse of deductions under the old tax regime. Officials said many taxpayers have been exploiting the convenience of paperless income tax return filings to inflate claims without adequate documentation.
The action comes on the heels of the department’s recent “NUDGE” campaign, in which taxpayers were informed of suspicious or unsupported deductions in their returns and were advised to file revised or updated returns.
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