The Income Tax Department has launched a large-scale operation against fraudulent income tax refund claims, conducting raids at multiple locations linked to chartered accountants and tax professionals across the country. This action is being seen as one of the biggest investigations into tax refund scams to date.
Large-scale fraud using false deductions
According to official sources, several CAs and accountants were found to be filing income tax returns on behalf of clients using false deduction and exemption claims. These fraudulent filings were made under various sections of the Income Tax Act, including Section 10(13A), 80D, 80E, 80G, and 80DDB, with the intent to secure undue refunds from the department.
Small claims, widespread misuse
While the individual refund amounts may have been small, the fraud was spread across thousands of taxpayers in different parts of the country, making it a large-scale financial deception. The system has now successfully detected the patterns of repeated misuse.
Over 100 taxpayers traced so far
The Central Board of Direct Taxes (CBDT) has so far identified more than 100 individuals who availed of these fake claims. These taxpayers have been given an opportunity to correct their returns. However, officials have made it clear that such misuse will no longer be tolerated.
Clear message from CBDT
The CBDT stated that many people were exploiting loopholes in the old tax regime. The government now aims to promote honest tax practices under the new tax regime, ensuring transparency and accountability. The department has indicated that it will continue taking strict action against such irregularities in the future.
