Income Tax Department cracks down on taxpayers claiming refunds against donations to fake political parties, charities

The Income Tax Department has exposed a nexus of intermediaries involved in filing income tax returns with fake deductions and exemptions. These intermediaries helped taxpayers illegally reduce their tax liability and claim fraudulent refunds .

Income Tax Guide Income Tax Slabs FY 2025-26 Income Tax Calculator 2025 New Income Tax Bill 2025

How donations to fake political parties and charities were used to claim bogus refunds According to the Income Tax Department, investigations revealed that some intermediaries had created pan-India agent networks that filed returns on a commission basis by inflating or fabricating deductions under the Income Tax Act. A large number of these bogus claims were linked to donations made to Registered Unrecognised Political Parties (RUPPs)