Bogus deduction claims: I-T searches 150 sites

In a major crackdown on tax evasion, the Income Tax (I-T) Department on Monday conducted a nationwide search operation on entities allegedly involved in claiming bogus deductions. Over 150 premises across multiple cities were searched, as part of the department's efforts to curb tax evasion and ensure compliance with tax laws.

According to the department, the searches were conducted on entities that claimed false deductions under various heads, including donations to political parties, medical insurance, tuition fees, and certain categories of loans. The department has been monitoring these entities for some time and had received intelligence about their alleged involvement in tax evasion.

The operation follows the department's 'NUDGE' campaign, which aimed to inform taxpayers about suspected bogus claims and advise them to file revised returns. The campaign has seen significant success, with approximately 40,000 taxpayers updating their returns and withdrawing false claims worth ₹1,045 crore.


"Analysis reveals rampant misuse of deductions under sections 10(13A), 80GGC, 80E, 80D, 80EE, 80EEB, 80G, 80GGA, and 80DDB. Exemptions have been claimed without valid justification. Employees of MNCs, PSUs, government bodies, academic institutions, and entrepreneurs are among those implicated. Taxpayers are often lured into these fraudulent schemes with promises of inflated refunds in return for a commission. Despite a fully e-enabled tax administration system, ineffective communication remains a significant hurdle in assisting taxpayers," I-T said in its release.