It stated many taxpayers had claimed deductions for donations to Registered Unrecognised Political Events (RUPPs) that have been later discovered to be non-operational, non-filers or not engaged in any political exercise.
In its investigation, the Revenue Tax Division discovered many intermediaries concerned in submitting returns with false claims of deductions and exemptions below the Revenue Tax Act, typically on a fee foundation.
These entities have been allegedly used to difficulty bogus donation receipts, enabling taxpayers to scale back their tax liabilities and declare fraudulent refunds and the division has already initiated motion towards them, CBDT stated in an announcement issued Saturday. Observe up searches additionally uncovered proof of fictitious donations and bogus company social duty (CSR) claims by corporations, the CBDT assertion stated.
Suspected Hawala Transactions
Authorities additionally discovered indications that some entities have been getting used as conduits for routing funds, together with suspected hawala transactions and cross-border remittances. The division has already initiated motion towards such intermediaries.
Knowledge analytics assist CBDT establish taxpayers availing such bogus transactions and donations and when the division reached out to such taxpayers, they failed to supply ample info to determine genuineness of donations. Many taxpayers have already revised their returns for the present evaluation 12 months 2025–26 and filed up to date returns for earlier years, it stated.The board has launched a “nudge” marketing campaign, giving taxpayers a chance to voluntarily replace their returns and withdraw incorrect claims. SMS and electronic mail advisories are being despatched to recognized taxpayers from December 12, to their registered contact particulars. The CBDT has requested taxpayers to make sure that their cellular numbers and electronic mail addresses are accurately up to date to keep away from lacking official communications.
