New Delhi: The Central Board of Direct Taxes (CBDT) has taken action against several intermediaries involved in filing Income Tax returns (ITRs) with fraudulent claims of deductions and exemptions under the Income Tax Act, the Ministry of Finance announced on Saturday.

Investigations revealed that some intermediaries had set up a network of agents across India to submit returns with incorrect claims on a commission basis.

The ministry stated, “It was 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.”

Enforcement actions indicated that many RUPPs, which were non-filers, non-operational at their registered addresses, and not engaged in political activity, were being used as conduits for hawala transactions, cross-border remittances, and issuing bogus donation receipts.

The CBDT conducted follow-up searches on these RUPPs and trusts, gathering incriminating evidence of bogus donations by individuals and fake CSR claims by companies.

The tax authority has strengthened its data-driven approach to detect suspicious claims early and identify high-risk behavioural patterns, particularly for taxpayers claiming deductions under Sections 80GGC and 80G of the Income Tax Act, 1961.

Analytical insights suggested that numerous taxpayers were claiming deductions for donations to suspicious entities or failing to provide sufficient information to verify the legitimacy of the organisations.

A significant number of taxpayers have already revised their ITRs for the current assessment year (2025-26) and filed updated returns for previous years.

The ministry added that a targeted “NUDGE” campaign has been launched as a taxpayer-friendly measure, allowing individuals to update their returns and withdraw incorrect claims. SMS and email advisories have been sent from December 12 to taxpayers on their registered mobile numbers and email addresses.

Taxpayers are advised to ensure that their contact details are accurate in filings to avoid missing official communications.

IANS