Crackdown on Bogus Tax Exemptions: Multi-City Raids Unfold

The Income-Tax Department has initiated raids across multiple cities to investigate entities aiding individuals in claiming false tax deductions. These deductions involve political donations, medical insurance, tuition fees, and loans. The operation targets taxpayers and advisors amidst concerns of unfiled updated ITRs, despite outreach via the NUDGE campaign.

The Income-Tax Department commenced extensive raids on Monday, targeting multiple cities as part of an investigation into tax evasion. The probe focuses on entities that help individuals secure fraudulent tax deductions by falsely claiming various exemptions.

Among the identified fraudulent deductions are claims related to political donations to both registered and unregistered political parties, medical insurance payments, tuition fees, and certain loan categories. These cases have raised red flags as they suggest a trend of systematic evasion practices.

The operation targets both the individuals involved and their tax advisors, including filers and accountants, who facilitate these bogus claims. This crackdown follows the department's failed attempts to correct non-compliance through its 'NUDGE' campaign, which prioritizes taxpayer trust and voluntary compliance.

(With inputs from agencies.)