Crackdown on Fraudulent Tax Claims: Unveiling the Massive Racket

The Income Tax Department launched an extensive verification operation on Monday, targeting over 150 locations nationwide as part of a broader crackdown on tax evasions. The sweeping action, aimed at exposing fraudulent claims of deductions and exemptions in Income Tax Returns (ITRs), is a significant move against individuals and entities engaged in such malpractices.

According to official sources, the operation involved meticulous searches and surveys at residential and commercial premises across several states. This initiative was prompted by detailed financial analyses received from third-party sources, coupled with ground-level intelligence and sophisticated AI tools. These efforts unearthed organized operations spearheaded by unethical ITR preparers and intermediaries, exploiting the system by filing returns with fictitious deductions and exemptions.

The Central Board of Direct Taxes (CBDT) indicated that this malpractice extended across various sectors, implicating employees of multinational corporations, public sector units, government bodies, academic institutions, and entrepreneurs. The crackdown underscores the urgency of honest tax compliance, urging taxpayers to disregard unauthorized agents promising inflated refunds and instead prioritize accurate reporting and adherence to legal tax obligations.

(With inputs from agencies.)