Income Tax Dept Unearths Massive ₹1.4 Crore Political Donation Fraud

The Income Tax Department has unearthed a massive fraud involving fraudulent claims for political donations amounting to over Rs 1,400 crore. A nationwide campaign targeting suspicious claims under Section 80GGC of the Income Tax Act revealed a pattern of inflated deductions, primarily by salaried professionals and business owners. The investigation, conducted in three phases, prompted over 35,000 taxpayers to file updated returns, leading to the recovery of Rs 404 crore in additional taxes and the reversal of Rs 949 crore in ineligible deductions. Hyderabad, Mumbai, Delhi, and Bengaluru emerged as hotspots for this fraud. The department found that many claims were for donations to unrecognized political outfits or were not made through prescribed banking channels. This crackdown highlights the department's increasing use of data analytics to identify and pursue tax evasion, ensuring greater transparency in political funding.