The Income Tax Department has exposed a massive tax fraud involving 90,000 salaried taxpayers who allegedly claimed wrongful deductions amounting to Rs 1,070 crore in their Income Tax Returns (ITR) for the financial year ending December 31, 2024.
Officials have initiated inquiries and the defaulters are now required to repay the dues to the government.
How taxpayers misled authorities
According to sources, the fraud was uncovered through a series of searches, seizures and survey operations conducted by the department.
It was found that many individuals had falsely claimed deductions under various sections, including 80C, 80D, 80E, 80G, 80GGB and 80GGC, which resulted in significant revenue losses for the government.
The taxpayers under scrutiny are employees from various sectors, including public sector units (PSUs), multinational corporations (MNCs) large private firms, LLPs and private limited companies. Investigators also discovered that certain fraudulent advisors misled these individuals into making false deduction claims in pursuit of higher refunds.
Who are the culprits?
When questioned about the identities of those involved, sources revealed that an analysis of email clusters linked most of the cases to employees working in prominent organisations across diverse sectors.
These include government organisations, statutory bodies, and major private enterprises, pointing to a widespread misuse of tax benefits.
Tax Department to start awareness campaigns
The Income Tax Department is set to launch awareness campaigns and outreach programmes in collaboration with employers. The objective is to educate taxpayers about the consequences of false deductions and ensure compliance with tax regulations.
The authorities have warned taxpayers to steer clear of fraudulent practices, emphasising that the department is closely monitoring suspicious activities. Experts advise taxpayers to be cautious and seek legitimate avenues for tax planning to avoid legal repercussions.
