New Delhi: In one of the largest nationwide crackdowns, the Income Tax Department on Monday initiated searches at nearly 200 locations across the country against over 100 individuals who allegedly channeled undisclosed income back into the system through fraudulent tax claims and political donations.

The search operations, launched in Maharashtra, Tamil Nadu, Delhi, Gujarat, Punjab, and Madhya Pradesh, exposed widespread abuse by various groups involved in fraudulent filings. The Central Board of Direct Taxes (CBDT) confirmed that further legal action will follow based on the evidence collected.

According to the official statement of the department, investigations have uncovered organized rackets operated by certain ITR preparers and intermediaries, who have been filing returns with fictitious deductions and exemptions. These fraudulent filings also involve the abuse of beneficial provisions, with some even submitting false TDS returns to claim excessive refunds.

It is learnt that officials from 14 Investigation Directorates of the I-T Department coordinated simultaneous raids to uncover bogus claims, misdeclared deductions, and exemption, including those under Section 80GGC, which allows tax deductions on donations to political parties.

The CBDT revealed that data analytics and AI tools helped detect organised rackets involving chartered accountants and fake tax returns. Investigations also uncovered misuse of several provisions of the Income Tax Act, such as Sections 10(13A), 80E, 80D, 80EE, 80EEB, 80G, 80GGA, and 80DDB, often in collusion with professional intermediaries.

The department is now poised to take stern action against continued fraudulent claims, including penalties and prosecution wherever applicable. The ongoing verification exercise across 150 premises is expected to yield crucial evidence, including digital records, that will aid in dismantling the networks behind these schemes and ensure accountability under the law. Further investigations are currently underway. DeshGujarat