Income Tax News: The Income Tax Department has acted against many intermediaries who were engaging in filing fraudulent income tax returns with bogus claims of exemptions and deductions under the Income Tax Act.
Income Tax News: Loopholes Exposed
In a press release, the department said an established network of agents by some intermediaries was involved in filing IT returns with false claims on commission basis. It was further added that donations to registered unrecognized political parties (RUPPs) and charitable institutions were made to claim bogus refunds.
The press release revealed that RUPPs were deployed as conduits to route unlawful transactions, issue bogus donation receipts and cross border remittances.
NUDGE Campaign
The Central Board of Direct Taxes (CBDT) said its data-driven approach has been strengthened for early detection of suspicious claims. It also helps identify high-risk behavior patterns. It added a targeted Nonintrusive Usage of Data to Guide and Enable (NUDGE) campaign was recently launched to help taxpayers update their income tax returns (ITRs) and without wrong claims, if any.
CBDT added that email and SMS advisories are being issued from 12th December 2025 to such taxpayers on their registered email addresses and mobile numbers.
In another development, the Income Tax Department issued a public advisory that cautioned taxpayers, especially senior citizens, against SMS messages, fraudulent emails and websites impersonating the IT department to steal critical financial and personal information.
