Income Tax Department Raids 200 Sites Over Fake Political Donation Claims Under Section 80GGC

The Income Tax Department initiated an extensive series of nationwide searches targeting entities and individuals involved in manipulating their Income Tax Returns through false claims of political donations, inflated medical bills, tuition fees, and other bogus deductions under Section 80GGC.

200 Locations Raided Over Deductions Under Section 80GGC

The IT Department has launched a large-scale operation across 200 sites, focusing on widespread misuse of Section 80GGC, which allows deductions for political contributions. According to internal reports, many individuals appeared to route their funds through unregistered political outfits or non-existent channels. Some of these claims included falsified receipts for contributions never made. The crackdown also includes scrutiny of forged bills related to medical expenses, tuition fees, and select taxable deductions.

Tax Advisors & Filers Under Scrutiny

Alongside individuals, the IT Department's search operations are also targeting tax consultants, intermediaries, and filing professionals who facilitated these fraudulent exemptions. These advisors allegedly forged documentation to support unverified claims on deductions, manipulating ITR filings for personal or client benefits. Authorities are examining both digital records and physical documentation to trace and establish the scale of the deception.

Failures Highlighted by NUDGE Framework

This operation follows findings from the government’s NUDGE campaign, initiated to subtly encourage voluntary tax compliance. Despite receiving alerts under this system, several taxpayers failed to submit correct updated ITRs, prompting enforcement action. The IT Department views this as non-cooperation and has now escalated monitoring and action against repeated offenders. Authorities hope this will echo as a deterrent across the system.

Read More: CBDT Recovers ₹20,000 Crore in Tax Dues in Q1, Sets ₹2 Lakh Crore Target for FY25!

Scope Expands Beyond Political Donations

Beyond political donations, authorities uncovered exaggeration in expenses like health insurance premiums, children’s tuition, and home loan interest. By artificially inflating these, taxpayers managed to lower their taxable income significantly, bypassing accurate tax obligations. In some cases, fabricated entries involved 3ird-party fake bill generators and dummy institutions.

Conclusion

The Income Tax Department’s targeted raids highlight growing concerns around fraudulent tax practices. The misuse of Section 80GGC, false exemption claims, and tax filing manipulations are now under sharper scrutiny. These measures are expected to tighten compliance and send a strong message on integrity in tax reporting.

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