Income Tax Department Targets Chartered Accountants in Rs 2,000 Crore Political Funding Tax Evasion Case

The Income Tax Department’s Jharkhand unit is investigating several Chartered Accountants (CAs) accused of helping taxpayers evade taxes worth Rs 2,000 crore by routing funds through bogus political donations. These donations, made to the Aam Janmat Party (registered in Bihar but led by individuals from Gujarat), were returned to donors after deducting a 5% commission. Several CAs, including 50 who are also tax evaders, allegedly affixed their signatures on party balance sheets without proper audits. The department is seeking cancellation of licenses of implicated CAs after approval from the CBDT and has issued notices to taxpayers to withdraw fake donations and update tax returns. The raids and probe are part of a crackdown on fraudulent political donation claims misusing Section 80GGC. The case highlights growing misuse of political funding provisions for tax evasion and the government’s stern response to curb such malpractice.