Organised Rackets, Fake Itrs: Income Tax Dept Launches Massive Crackdown On Bogus Deductions

The Income Tax Department has launched a nationwide crackdown connected fraudulent taxation refund claims, targeting rackets involving inflated deductions and mendacious exemptions successful Income Tax Returns. The cognition began connected July 14 crossed 150 locations.

In a connection issued by nan Central Board of Direct Taxes (CBDT), nan section said it uncovered a bid of organised scams wherever intermediaries and ITR preparers revenge returns pinch fictitious claims nether provisions of nan Income-tax Act, 1961.

"Investigations person uncovered organised rackets operated by definite ITR preparers and intermediaries, who person been filing returns claiming fictitious deductions and exemptions," nan section noted. "These fraudulent filings impact nan maltreatment of beneficial provisions, pinch immoderate moreover submitting mendacious TDS returns to declare excessive refunds."

The verification thrust is backed by financial data, crushed intelligence, and artificial intelligence tools. Search and seizure operations successful Maharashtra, Tamil Nadu, Delhi, Gujarat, Punjab, and Madhya Pradesh person recovered actual grounds of maltreatment crossed sectors.

Analysis revealed misuse of deductions nether sections including 10(13A), 80GGC, 80E, 80D, 80EE, 80EEB, 80G, 80GGA, and 80DDB. Employees of MNCs, PSUs, world institutions, and entrepreneurs person been implicated successful nan fraud. According to nan department, galore were lured pinch promises of inflated refunds successful speech for a commission.

"Despite a afloat e-enabled taxation management system, ineffective connection remains a important hurdle successful assisting taxpayers," nan connection said. It added that impermanent email IDs were often utilized by agents to record bulk returns, which later went unattended, resulting successful unread notices.

The Department stressed that its existent enforcement thrust builds connected a twelvemonth of voluntary compliance efforts. Outreach done SMS, email advisories, and beingness campaigns led to astir 40,000 taxpayers revising their returns successful nan past 4 months, voluntarily withdrawing bogus claims worthy Rs 1,045 crore.

However, galore stay non-compliant. "The Department is now poised to return stern action against continued fraudulent claims, including penalties and prosecution wherever applicable," it said.

Taxpayers were again advised to debar unauthorised agents and guarantee their filings are accurate. 

Published on: Jul 14, 2025 6:36 PM IST