07/08/2025
Income Tax Department Cracks Down on Bogus Claims of Deductions & Exemptions :
The Income Tax Department initiated a large-scale verification operation across multiple locations in the country on 14 th July 2025, targeting individuals and entities facilitating fraudulent claims of deductions and exemptions in Income Tax Returns (ITRs).
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.
Taxpayers are often lured into these fraudulent schemes with promises of inflated refunds in return for a commission.
The Department is now poised to take stern action against continued fraudulent claims, including penalties and prosecution wherever applicable.