Income Tax Dept Unearths Massive ₹1.4 Crore Political Donation Fraud
The Income Tax Department launched a "nudge" campaign in reaction to the pervasive anomalies, which led to more than 35,000 filers voluntarily amending their income tax filings.
A substantial fraud involving false claims for political donations totaling about ₹1,400 crore has been uncovered by a nationwide tax drive. The Income TaxDepartment led the crackdown, which focused on fraudulent deductions made under Section 80GGC of the Income Tax Act, mostly by business owners and salaried IT workers. As reported by Times of India , a total financial...
A substantial fraud involving false claims for political donations totaling about ₹1,400 crore has been uncovered by a nationwide tax drive. The Income TaxDepartment led the crackdown, which focused on fraudulent deductions made under Section 80GGC of the Income Tax Act, mostly by business owners and salaried IT workers.
As reported by Times of India , a total financial correction of ₹1,353 crore has been made as a result of the probe. This includes the reversal of ₹949 crore in improperly claimed ineligible deductions and the recovery of ₹404 crore in additional taxes.
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False donations to Registered Unrecognized Political Parties (RUPPs) were made by taxpayers as part of the scheme. These RUPPs were frequently discovered to be nothing more than shell companies that had never run for office or submitted the required reports to the Election Commission. Investigators found that people would write checks to these organizations and then get the money back in cash after a modest commission was subtracted. Illegal tax refunds resulted from the exploitation of these fictitious donations to claim tax deductions.
Numerous metropolitan areas, including Hyderabad, Mumbai, Delhi, and Bengaluru, were identified as important hubs for the extensive fraudulent activity. Second only to the Mumbai zone in terms of the number of such bogus claims was the Telangana-Karnataka area.
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The Income Tax Department launched a "nudge" campaign in reaction to the pervasive anomalies, which led to more than 35,000 filers voluntarily amending their income tax filings. Additionally, the department has sent letters to several people who are suspected of making false claims and is running awareness campaigns to inform staff members about the legal repercussions of such behavior, especially in the IT sector.
The exploitation of provisions intended for legitimate political contributions is brought to light by this massive tax push, which also emphasizes the authorities' heightened attention on preventing tax evasion through fraudulent tactics.
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