The Income Tax Department has conducted raids at over 200 locations across the country. This action was taken in response to fraudulent tax claims made under the guise of political donations, medical expenses, and tuition fees.
IT Raid: The Income Tax Department has once again launched a major operation in several parts of the country. Investigating cases of fraudulent tax exemptions, the department simultaneously raided over 200 locations. This action is targeting individuals and institutions that were improperly benefiting from tax exemptions by creating fake bills for political donations, tuition fees, and medical expenses.
Raids Initiated Based on Information Received
According to sources, the department had been receiving continuous complaints that some individuals were claiming tax exemptions through fake receipts and bills. After investigating these complaints, the department decided to conduct nationwide raids. The operation was carried out simultaneously in major cities like Delhi, Mumbai, and Hyderabad, as well as several other locations across different states.
The Game of Fake Political Donations
Under Section 80GGC of the Income Tax Act, donations made to a political party or electoral trust are eligible for tax exemption. However, many individuals misused this provision. Sources indicate that some middlemen, for a commission, were creating fake donation receipts, and taxpayers were claiming tax exemptions based on these receipts. Commissions of 5 to 10 percent were reportedly being charged in these cases.
Fraud Also Occurred Under the Name of Medical Expenses and Tuition Fees
Not only in political donations, but similar fraud was also found in the name of medical expenses and children's tuition fees. Tax exemptions were being claimed by presenting bills that had no genuine record. Along with taxpayers, some agents and professionals are also believed to be involved in this scam.
Greater Activity in Major Cities
This scam was particularly active in major cities like Delhi, Mumbai, Pune, Bengaluru, and Hyderabad. Here, taxpayers exploited their influence and contacts to take undue advantage of the system. The Income Tax Department took these complaints seriously this time and conducted swift raids based on concrete evidence.
Department Preparing for Legal Action
Stric legal action is being prepared against those who have been found to have concrete evidence against them, under the Income Tax Act. Both the government and the department have adopted a strict stance on tax evasion, and no leniency is being shown in such cases.
