How donations to faux political events and charities have been used to say bogus refundsAccording to the Revenue Tax Division, investigations revealed that some intermediaries had created pan-India agent networks that filed returns on a fee foundation by inflating or fabricating deductions below the Revenue Tax Act. A lot of these bogus claims have been linked to donations made to Registered Unrecognised Political Events (RUPPs) and sure charitable establishments, says the Revenue Tax Division.
The Revenue Tax Division says in a social media publish on X (previously Twitter): “It was noticed that a large quantity of bogus claims have been made on account of donation to Registered Unrecognised Political Events (RUPPs) or Charitable Establishments and lowered their tax obligations, and have additionally claimed bogus refunds. Proof gathered from enforcement actions indicated that RUPPs, a lot of which have been non-filers, non-operational and registered addresses, and weren’t engaged in any political exercise have been getting used as conduits for routing unaccounted, cross border remittances and issuing bogus receipts for donations. The division carried out observe up searches in opposition to a few of these RUPPs and trusts and gathered incriminating evidences in respect of bogus donations by people and bogus CSR by corporations.”
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CBDT flags suspicious claims made below Sections 80G and 80GGC
The Central Board of Direct Taxes (CBDT) says that it has additional strengthened its data-analytics-based monitoring programs to establish suspicious claims at an early stage. One such high-risk sample has been flagged in circumstances the place taxpayers have claimed deductions below Part 80GGC and Part 80G of the Revenue Tax Act, 1961.
Information evaluation confirmed that a number of taxpayers both donated to suspicious entities or failed to supply enough particulars to determine the genuineness of the recipient organisations. In response, a major variety of taxpayers have already revised their returns for the present evaluation yr (AY 2025-26) and have additionally filed up to date returns for earlier years, voluntarily withdrawing incorrect claims.
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What’s the Nudge marketing campaign?
As a taxpayer-friendly measure, the Revenue Tax Division has launched a focused “Nudge” marketing campaign, providing taxpayers a chance to right their filings earlier than coercive motion is taken.
Final date to evaluation ITR below NudgeUnder this initiative, SMS and e-mail advisories are being despatched to recognized taxpayers from December 12, 2025, urging them to evaluation their returns and replace them if they’ve made any improper claims.
Taxpayers are suggested to make sure that their cell numbers and e-mail IDs are accurately registered with the division in order that they don’t miss necessary communications.
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