The Central Board of Direct Taxes (CBDT) has stepped up its efforts to curb bogus deduction and exemption claims, nudging taxpayers to voluntarily correct their income tax returns before stricter action follows. The Income Tax department has started sending SMS and email advisories to taxpayers for wrongful deduction claims related to unrecognised political parties or charitable institutions.
The department has come across cases of fake deduction claims filed under Section 80C of the Income Tax Act, which covers a series of investments, and even Section 80GGC, which relates to donations to Registered Unrecognised Political Parties (RUPPs) or Charitable Institutions.The CBDT said through data analysis it has 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.
