Delhi techie couple donates Rs 50 to political party, claims Rs 40 lakh ITR deduction, evades Rs 5.3 crore income tax, faces IT probe

An IT professional and his wife from Delhi-NCR allegedly used fake political donation receipts, a fabricated education loan certificate and bogus housing loan claims to evade taxes worth an estimated Rs 5.3 crore over five years. Their alleged methods included turning an actual Rs 50 political donation into a deduction claim exceeding Rs 40 lakh and submitting a ChatGPT-generated certificate for nearly Rs 3 crore in education loan interest.

Income Tax Department's investigation also uncovered allegedly manipulated bank statements, housing loan claims on a property that had already been rented out and undisclosed rental income of Rs 10 lakh to Rs 16 lakh. The couple had also purchased around half a dozen properties using some of the funds, according to the investigation, reports TOI.

How a Rs 50 donation became a Rs 40 lakh tax deduction

The investigation began after the wife's income tax return showed a deduction of more than Rs 40 lakh for a political donation.


Under Section 80GGC of the Income Tax Act, eligible donations made to registered political parties can qualify for a deduction from taxable income, subject to applicable conditions. This reduces the income on which tax is calculated.

However, her Form 16, which records salary and tax-related details provided by her employer, showed deductions of only around Rs 1.2 lakh.

When officials checked the political donation claim with the party concerned, they found that the woman had actually donated just Rs 50 and had received a receipt for that amount.

Investigators allegedly discovered that this original receipt had been digitally modified to show a much larger contribution. Several fabricated receipts were also generated to support the claim of donations exceeding Rs 40 lakh.

Husband submitted bank statements to support the claims

The husband, who filed the couple's income tax returns, was summoned during the investigation. He reportedly submitted the modified donation receipts as well as bank statements to support the deductions.

However, the transactions did not match the claimed political contributions. Officials sought verification from the bank and allegedly found that several unrelated transactions had been altered to appear as donations.

These included loan repayments, credit card payments and bank transfers, including transfers to the couple's own accounts.

The alleged manipulation of bank statements became another part of the investigation, as the couple had submitted these documents to substantiate their deduction claims.

Nearly Rs 3 crore claimed as Yale education loan interest

Another unusual claim involved nearly Rs 3 crore in education loan interest for studies at Yale University.

The couple submitted an interest certificate to support the deduction. However, investigators reportedly found that no family member of the couple under scrutiny had ever studied at Yale.

The certificate was allegedly created using ChatGPT and submitted as evidence to support the education loan interest claim.

Both spouses claimed deductions on the same house

Investigators also found alleged irregularities in the couple's housing loan deductions.

Both spouses had described themselves as the sole owner of the same property while claiming deductions for housing loan interest. They have now admitted that the property was jointly owned.

More importantly, the property was reportedly rented out rather than being occupied by the couple themselves.

One spouse had declared nil rental income while claiming around Rs 2 lakh in housing loan interest. The other had claimed up to Rs 5 lakh in interest deductions.

The department also found discrepancies in the loan details. Income tax returns require taxpayers to disclose loan account numbers and the lending bank when claiming relevant deductions.

According to the investigation, the bank's name was changed in one instance and the loan amount was increased to Rs 6 crore, with interest of Rs 8 lakh claimed.

However, officials discovered that the loan had actually been repaid in 2015. The deductions under investigation related to financial years beginning 2021-22, several years after the loan had been settled.

Property earned up to Rs 16 lakh in rent

The couple had allegedly treated the property as self-occupied in their returns despite earning rental income from it.

Investigators found that the property was generating between Rs 10 lakh and Rs 16 lakh in rent during the period under scrutiny.

The alleged failure to disclose this income added to the discrepancies identified in the couple's returns.

Officials also found that the couple had purchased around half a dozen properties using some of the funds involved in the transactions being investigated.

Couple shifted political donation claim to charitable donations

The investigation reportedly encountered another complication when the husband changed the category of the political donation deduction.

After the case was initially picked up, he shifted the claim from Section 80GGC, which covers eligible political contributions, to Section 80G, which provides deductions for eligible donations to specified charitable institutions and funds.

However, he reportedly did not surrender the deduction claim.

The department's investigation continued into the supporting documents and transactions behind the claims.

What action could the couple face?

Income Tax Department has estimated alleged tax evasion of Rs 5.3 crore over five years. The couple now face penalties and other legal action, according to the report.

The allegations cover several aspects of their tax returns like political donations, education loan interest, housing loan interest and rental income. Investigators also reportedly found digitally modified receipts, altered bank statements and a fabricated education loan certificate.

(With TOI inputs)