Home / Business and Economy / IT Dept Targets Bogus Tax Claims Now
IT Dept Targets Bogus Tax Claims Now
13 Dec
Summary
- Income Tax Department launched NUDGE campaign for fake donation claims.
- SMS and email advisories issued to taxpayers since December 12, 2025.
- Bogus claims via RUPPs and charities facilitate tax evasion.
The Income Tax Department has launched a "NUDGE" campaign to tackle fraudulent donation claims made to political parties and trusts. This initiative aims to encourage taxpayers to correct any bogus deductions they may have claimed. Since December 12, 2025, the department has been sending SMS and email advisories to affected individuals, urging them to revise their Income Tax Returns.
The campaign targets claims made through Registered Unrecognised Political Parties (RUPPs) and charitable institutions, which have been identified as conduits for tax evasion and illicit transactions. The department's investigation revealed networks of agents nationwide involved in filing returns with incorrect deductions on a commission basis. Evidence suggests these RUPPs often exist only on paper, facilitating hawala transactions and issuing fake donation receipts.
Following enforcement actions, the Income Tax Department has gathered incriminating evidence against certain RUPPs and trusts concerning bogus donations by individuals and fraudulent CSR claims by companies. This data-driven approach helps in early detection of suspicious claims, with a specific focus on deductions under Sections 80GGC and 80G of the Income Tax Act. Taxpayers are advised to ensure their contact details are up-to-date to receive important communications.
