Rules, Rights & Rites -71
I usually post all important items related to official rulings, union news, and other general matters on my YouTube channels: Yourskayveeyes (English) and Anbudan Kayveeyes (Tamil).
However, due to the recent spate of orders and the high volume of information being received, I have not been able to convert every item into a video. Therefore, I am introducing these new slots to post current matters and updates that have not yet been published on YouTube. This ensures you stay informed on every detail, even if a video hasn't been made yet …………….Kayveeyes
Income Tax Department's on cracking down on bogus claims of deductions and exemptions,
• The Income Tax Department initiated a large-scale verification operation across India in July 2025 to identify and address fraudulent claims of deductions and exemptions in Income Tax Returns (ITRs).
• The crackdown specifically targets the misuse of tax benefits under the Income-tax Act, 1961, which is often in collusion with professional intermediaries.
• Investigations have revealed an organized racket involving certain ITR preparers and intermediaries facilitating fictitious deductions and exemptions, leading to excessive refunds.
• The Department utilized financial data received from third-party sources, ground-level intelligence, and advanced artificial intelligence tools to identify suspicious patterns.
• Findings from recent searches and seizure operations indicate that fraudulent claims were widespread across Maharashtra, Tamil Nadu, Delhi, Gujarat, Punjab, and Madhya Pradesh, often involving various groups and entities.
• Many entities, including employees of MNCs, PSUs, government bodies, academic institutions, and entrepreneurs, claimed various invalid exemptions under Sections 10(13A), 80GG, 80E, 80D, 80EE, 80EEB, 80G, 80GGA, and 80DDB.
• Taxpayers were often lured into fraudulent schemes with promises of inflated refunds. The Department observed that ineffective communication (e.g., temporary email IDs) makes it difficult to reach non-compliant individuals, and official notices are often unread.
• Under this principle, the Department has emphasized voluntary compliance through outreach efforts, SMS, email advisories, and nudging taxpayers to revise their returns and pay the correct tax.
• Over the past year, physical outreach programs resulted in 80,000 taxpayers updating their returns in the last four months, leading to the withdrawal of false claims amounting to ₹1,045 crore (approximately ₹10.45 billion).
• The Department will now pursue stern action against continued fraudulent claims, including penalties and prosecution. Verification of over 150 premises is underway to uncover crucial evidence and digital records to dismantle these schemes.
• Further investigations into these matters are currently in progress.
• Taxpayers are advised to exercise caution and avoid receiving financial advice from unauthorized agents or intermediaries who might facilitate undue refunds.
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