Latest news with #Income-TaxDepartment
Hindustan Times
14-07-2025
- Business
- Hindustan Times
Income tax dept cracks down on bogus claims of deductions by employees
The Income-Tax Department has found organised rackets operated by some returns preparers and intermediaries across the country, filing income-tax returns (ITRs) on behalf of their clients -- including employees of multinational companies, public sector firms, government bodies, academic institutions, and entrepreneurs -- to fraudulently claim exemptions and refunds, the Finance Ministry said. To identify suspicious patterns, the I-T department has leveraged financial data received from third-party sources, ground-level intelligence, and advanced artificial intelligence tools. (Representational image) The department is now poised to take stern action against continued fraudulent claims, including penalties and prosecution wherever applicable, it said in a statement on Monday. '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,' it said. Further investigations are currently underway, it added. 'Taxpayers are again advised to file correct particulars of their income and communication coordinates and not be influenced by advice from unauthorised agents or intermediaries promising undue refunds,' it said. The department initiated a large-scale verification operation across multiple locations in the country today, targeting individuals and entities facilitating fraudulent claims of deductions and exemptions in ITR filings, the statement said. 'This action follows a detailed analysis of the misuse of tax benefits under the Income-tax Act, 1961, often in collusion with professional intermediaries,' it added. These fraudulent filings involve the abuse of beneficial provisions, with some even submitting false tax deducted at source (TDS) returns to claim excessive refunds. To identify suspicious patterns, the department has leveraged financial data received from third-party sources, ground-level intelligence, and advanced artificial intelligence tools. 'These findings are further substantiated by recent search and seizure operations conducted in Maharashtra, Tamil Nadu, Delhi, Gujarat, Punjab, and Madhya Pradesh, where evidence of fraudulent claims was found to have been used by various groups and entities,' it said. 'Exemptions have been claimed without valid justification. Employees of multinational companies (MNCs), public sector undertakings (PSUs), government bodies, academic institutions, and entrepreneurs are among those implicated,' it said. Taxpayers are often lured into these fraudulent schemes with promises of inflated refunds in return for a commission. Despite a fully e-enabled tax administration system, ineffective communication remains a significant hurdle in assisting taxpayers. It has been observed that such ITR preparers often create temporary email IDs solely for filing bulk returns, which are later abandoned, resulting in official notices going unread. The ministry said the government promotes voluntary compliance, and its efforts have some positive outcomes. 'As a result, approximately 40,000 taxpayers have updated their returns in the last four months, voluntarily withdrawing false claims amounting to ₹1,045 crore. However, many remain non-compliant, possibly under the influence of the masterminds behind these evasion rackets,' it said. In line with its guiding principle of 'Trust Taxpayers First', the department has been promoting voluntary compliance.
New Indian Express
14-07-2025
- New Indian Express
Income-Tax department conducts raids in bogus tax deductions case
NEW DELHI: The Income-Tax Department on Monday launched multi-city raids as part of a tax evasion probe against those entities which assist certain individuals avail bogus deductions in their returns by claiming a variety of exemptions, official sources said. According to officials, false deductions claimed by persons in lieu of making political donations to registered or unregistered political parties, payment of medical insurance, tuition fee and certain category of loans are among those cases which are being investigated as part of these raids. Certain individuals and their tax advisors like filers and accountants, who help them claim bogus exemptions, are being searched as part of the operation, they said. The action was taken after it was found that certain taxpayers have not filed their updated correct ITRs (Income Tax Returns) even after the tax department approaching them under the NUDGE (Non-intrusive Usage of Data to Guide and Enable) campaign which has a philosophy of 'trust taxpayers first', they said.
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Business Standard
14-07-2025
- Business
- Business Standard
I-T dept conducts raids in multiple cities in bogus tax deductions case
False deductions claimed by persons in lieu of making political donations to political parties, payment of medical insurance, and tuition fee are among those cases which are being investigated Press Trust of India The Income-Tax Department on Monday launched multi-city raids as part of a tax evasion probe against those entities which assist certain individuals avail bogus deductions in their returns by claiming a variety of exemptions, official sources said. They said false deductions claimed by persons in lieu of making political donations to registered or unregistered political parties, payment of medical insurance, tuition fee and certain category of loans are among those cases which are being investigated as part of these raids. Certain individuals and their tax advisors like filers and accountants, who help them claim bogus exemptions, are being searched as part of the operation, they said. The action was taken after it was found that certain taxpayers have not filed their updated correct ITRs (Income Tax Returns) even after the tax department approaching them under the NUDGE (Non-intrusive Usage of Data to Guide and Enable) campaign which has a philosophy of 'trust taxpayers first', they said. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
The Hindu
14-07-2025
- The Hindu
I-T Department conducts raids in bogus tax deductions case
The Income-Tax Department on Monday (July 14, 2025) launched multi-city raids as part of a tax evasion probe against those entities which assist certain individuals avail bogus deductions in their returns by claiming a variety of exemptions, official sources said. They said false deductions claimed by persons in lieu of making political donations to registered or unregistered political parties, payment of medical insurance, tuition fee and certain category of loans are among those cases which are being investigated as part of these raids. Certain individuals and their tax advisors like filers and accountants, who help them claim bogus exemptions, are being searched as part of the operation, they said. The action was taken after it was found that certain taxpayers have not filed their updated correct ITRs (Income Tax Returns) even after the tax department approaching them under the NUDGE (Non-intrusive Usage of Data to Guide and Enable) campaign which has a philosophy of 'trust taxpayers first', they said.
Time of India
11-07-2025
- Business
- Time of India
Income Tax: Changing these details on e-Filing website? Here's are the ways you can e-verify it
Here are the steps to change contact details by e verification Academy Empower your mind, elevate your skills Things to note when updating contact details The Income-Tax Department relies on the registered mobile number and email ID for all important communications related to e-Filing . Taxpayers should ensure that their contact details on the income tax portal are valid, updated, and personally accessible. To maintain direct and secure communication, taxpayers must verify and update their contact information on the e-Filing portal at the updating contact details on the Income Tax e-Filing portal, taxpayers must now complete an additional step of e-verification . This added layer of security ensures that only the rightful owner updates the contact information. Taxpayers can choose from multiple e-verification methods, including Aadhaar OTP , Digital Signature Certificate (DSC), net banking, linked bank account, or demat account. One of these methods must be used to authenticate and successfully update the contact read: Is LTCG exemption on equity, equity mutual funds Rs 1 lakh or Rs 1.25 lakh while filing ITR for FY 2024-25 (AY 2025-26)? Step 1: Log in to the income tax e-filing portal by entering your 2: Click on your profile picture in the top right corner and select 'My Profile' from the dropdown. Alternatively, you can select the 'Update Profile' 3: On the personal details page, click on the 'Edit' button under the 'Contact' 4: You can update the contact details here, such as mobile number, email ID and address as per your PAN or Aadhaar card and click on 'Save'. On the 'Verify your Contact Details' page, enter the OTP received on your mobile number and email ID and click 'Submit'.Step 5: Next page will ask 'How do you want to e-verify?'Select from the below listI would like to verify using OTP on mobile number registered with AadhaarI would like to verify using Digital Signature CertificateGenerate Electronic Verification CodeThrough Net bankingThrough Bank accountThrough demat accountA success message page is displayed along with a Transaction ID. Please keep a note of the Transaction ID for future reference. You will also receive a confirmation message on your email ID and mobile number registered on the e-Filing you update your mobile number and email ID as per bank details, you will receive the OTP on the primary mobile number and primary email ID respectively entered on the e-Filing you update your mobile number and email ID as per Aadhaar and no other edits have been made, you will not be required to verify the mobile number, however, you will be required to verify the email case you only update address details (as per PAN / Aadhaar), no OTP authentication will be required. On successful updation of the address an email will be sent to you on the primary email ID registered on the e-Filing portal.
