Tax Evasion Crackdown: CBDT Exposes Nationwide Network Of Bogus I-T Filings
The operation has uncovered a concerning practice where certain intermediaries established pan-India agent networks, working on a commission basis, to manipulate ITRs.
The Central Board of Direct Taxes (CBDT) on Saturday launched a sweeping enforcement action targeting a nationwide network of intermediaries and agents involved in filing fraudulent income tax returns (ITRs) with bogus claims of deductions and exemptions.
The operation has uncovered a concerning practice where certain intermediaries established pan-India agent networks, working on a commission basis, to manipulate ITRs.
The CBDT observed that huge amount of bogus claims have been made on account of donation to Registered Unrecognised Political Parties (RUPPs) or Charitable Institutions and reduced their tax obligations and have also claimed bogus refunds.
Evidence gathered from enforcement actions indicated that RUPPs many of which were non-filers, non-operational at their registered addresses, and are not engaged in any political activity, were being used for routing funds, hawala transactions, cross-border remittances and issuing bogus receipts for donations.
The CBDT carried out follow up searches against some of these RUPPs and Trusts and gathered incriminating evidence in respect of bogus donations by individuals and bogus CSR by companies.
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Data Analytics Flag High-Risk Taxpayers
The CBDT has significantly strengthened its data-driven approach to detect suspicious claims early and identify high-risk behavioural patterns.
One such pattern identified involves taxpayers claiming deductions under Section 80GGC or 80G of the Income Tax Act, 1961. Data analytics strongly suggests that numerous taxpayers are claiming deductions for donations made to suspicious entities or have failed to provide the necessary information to confirm the entities' genuineness.
As a taxpayer-friendly measure, the CBDT has launched a targeted 'NUDGE' campaign.
This initiative offers taxpayers a final opportunity to review their filings, update their ITRs, and voluntarily withdraw any incorrect claims made.
Starting December 12, 2025, the Department is issuing SMS and email advisories to affected taxpayers on their registered contact details. The CBDT has advised every taxpayer to ensure that correct mobile and email ids are mentioned in their filings with the department so that they do not miss out any communication.
