New Delhi, July 16: India’s Income Tax Department on Monday launched multi-city raids as part of a probe into suspected bogus tax deduction claims, targeting individuals and tax advisors allegedly involved in helping taxpayers fraudulently claim exemptions, official sources said.
The operation focuses on cases where deductions were claimed against political donations—both to registered and unregistered parties—as well as expenses such as medical insurance, tuition fees, and certain loan categories.
Officials said accountants, tax filers, and consultants who assisted individuals in claiming false exemptions are also under scrutiny.
The raids were triggered after it was found that several taxpayers failed to file updated and accurate Income Tax Returns (ITRs), even after being contacted under the department’s NUDGE (Non-intrusive Usage of Data to Guide and Enable) campaign. The initiative, which operates on a “trust taxpayers first” principle, encourages voluntary compliance by flagging discrepancies.
The department is investigating the extent of revenue loss and gathering evidence to determine the scale of the alleged fraud. Further details on the quantum of the evasion or the number of locations searched were not immediately disclosed.
