I‑T Dept Raids 200+ Premises Over Fake Deductions
The Income Tax Department has launched a large-scale crackdown on bogus claims made in income tax returns by individuals across India. On July 14, over 200 premises were searched as part of an operation targeting fraudulent deductions claimed under sections like 80G (donations), 80E (education loans), medical reimbursements, and other exemptions.
Bogus Refund Rackets Exposed
Officials uncovered organised networks of intermediaries and agents who were helping employees of corporates, public sector units, IT firms, startups, and educational institutions file false claims. In many cases, taxpayers submitted forged documents and fake TDS statements to boost refunds or reduce taxable income.
These agents often charged a fee or took a percentage of the refunded amount, operating under the promise of “guaranteed refunds” with little accountability.
Tech-Enabled Detection
The department used AI-driven risk assessment tools, data analytics, and cross-verification with third-party sources to flag suspicious returns. Earlier pilot investigations in Maharashtra, Delhi, Gujarat, Tamil Nadu, and Punjab had revealed a pattern of tax evasion, prompting the nationwide operation.
₹1,045 Crore Worth Of Fake Claims Withdrawn
Following digital alerts and awareness campaigns, more than 40,000 taxpayers have already revised their returns voluntarily, leading to the withdrawal of bogus claims worth ₹1,045 crore over the past four months. The department has confirmed that enforcement action will now begin against repeat offenders and those found guilty of deliberate fraud.
Warning To Taxpayers
The Income Tax Department has advised all taxpayers to file accurate returns and avoid unverified agents or tax preparers promising inflated refunds. Those caught may face penalties, interest, and even prosecution under the Income Tax Act.
This move is part of a wider effort to ensure voluntary compliance and clean up systemic misuse of deductions in India’s tax framework.
