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Dec 15, 2025
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Bogus tax deductions under scanner: CBDT flags fake donation claims, warns taxpayers via SMS and email
The Central Board of Direct Taxes (CBDT) has stepped up its efforts to curb bogus deduction and exemption claims, nudging taxpayers to voluntarily correct their income tax returns before stricter action follows.
In a recent move, the Income Tax Department has acted against several intermediaries and return filers who were found helping taxpayers claim fake deductions and refunds under the Income Tax Act. These intermediaries allegedly operated through a wide network of agents across the country, filing returns with incorrect claims on a commission basis, the Income Tax Department said in a release on December 13.
How bogus deduction claims were made
Investigations revealed that a large number of false claims were routed through donations to Registered Unrecognised Political Parties (RUPPs) and certain charitable institutions under Sections 80G and 80GGC of the Income Tax Act.
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