Page Contents
The Income Tax Department has conducted raids at 200+ locations across India, uncovering a network of intermediaries helping salaried taxpayers file fraudulent ITRs by misusing deductions and exemptions. Fraudulent refunds were often claimed by salaried taxpayers through fabricated documents under these provisions:
Section 80C – Fake claims for LIC, PPF, ELSS, tuition fees, etc.
Income tax Section 80D – Bogus medical insurance premium receipts.
Section 24(b) – Fake housing loan interest certificates from non-existent/related parties.
Sec 10(13A) (HRA) – Fake rent receipts, even from family members, while living in own house.
Section 80E / 80EEA – False claims for interest on education/home loans never availed.
Sec 80DDB – False deductions for medical treatment without certified documents.
Section 80G – Fake donations cross-verified through online systems.
Sec 80GGC – Political donations under scrutiny; donees are now being investigated.
40,000 taxpayers have already withdrawn false claims.
INR 1,045 crore of fictitious deductions voluntarily reversed.
Review your ITR for any doubtful deductions/exemptions.
Withdraw incorrect claims by filing an ITR-U (Updated Return) within the prescribed time.
Voluntary compliance now will save you from penalties, prosecution, and higher interest later.
The department is cleaning house before the ITR season. Any fake claims are traceable and may invite notices, raids, and penal consequences.
Press release from CBDT regarding bogus deductions in income tax returns. This press release is essentially a warning and awareness campaign by the Central Board of Direct Taxes to curb fraudulent deduction claims, especially related to donations to political parties and charitable institutions. Key Points from the Press Release
Due Dates for Income Tax Return Filing: Audit vs Non-Audit Cases (FY26) Income Tax Return Filing Due Dates: Audit vs… Read More
Key Tax Proposals for NRIs & Foreign Investors in Budget 2026 Foreign investors and NRIs closely examine India’s Union Budget… Read More
India’s New Income-tax Act, 2025 – Effective 1 April 2026 The Income-tax Act, 2025 represents a structural rewrite of India’s… Read More
CBDT Releases Draft Income Tax Rules, 2026 & Draft Forms Draft Income-tax Rules, 2026—What You Need to Know: Key Changes,… Read More
Advertising & Promotion by CA Firms For decades, the Institute of Chartered Accountants of India’s Code of Ethics has prohibited… Read More
Applicable TDS Provisions on Shareholders on interim dividend/ dividend in India, In pursuant to amendments effective 1 April 2020, dividend… Read More