SOURCE : NEW18 NEWS
Last Updated:January 17, 2025, 17:46 IST
The investigation found that many taxpayers made fake claims for interest on education loans they did not take, HRA without renting homes, and false charitable donations or tax-free investments
The actual number of fraudulent claim cases could be three times higher than the reported figures. (Representative/Shutterstock)
Many individuals attempt to reduce their income tax liability through various means. However, the Income Tax Department is cracking down on those employing illegal methods to evade taxes.
By December 2024, the department had apprehended 90,000 taxpayers who attempted to claim fraudulent deductions through fabricated donations and investments.
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Recent investigations and surveys conducted by the department revealed that a significant number of individuals are making false donation claims to political parties and charitable organisations. In the cases uncovered thus far, the total amount of tax exemption falsely claimed amounts to Rs 1,070 crore.
The investigation also exposed instances where individuals claimed interest payments on non-existent education loans. Similarly, some individuals fabricated House Rent Allowance (HRA) claims despite not having rented any property. Furthermore, numerous violations related to fictitious claims of charitable donations and tax-free investments have come to light.
Provisions such as Section 80C (investment exemption), 80D (health insurance premium), 80E (education loan), 80G (charity donation), and 80GGB and 80GGC (donations to political parties and electoral trusts) of the Income Tax Act were exploited for fraudulent purposes. The department has established a standard operating procedure (SOP) to implement stringent measures against these cases. Employees and employers found to have made false claims have been advised to rectify their tax returns to avoid legal repercussions.
Officials estimate that the actual number of fraudulent claim cases could be three times higher than the reported figures.
The department has intensified its scrutiny of companies where such violations are prevalent. Employers are urged to educate their employees about these regulations.
The Income Tax Department has issued a stern warning to taxpayers, emphasising that irregularities will result in severe consequences. The department appeals to all citizens to file accurate and verified claims, refraining from any form of tax evasion.
