Income-Tax department conducts raids in bogus tax deductions case:

According to officials, false deductions claimed by persons in lieu of making political donations to registered or unregistered political parties, payment of medical insurance, are among those cases which are being investigated as part of these raids.

The action was taken after it was found that certain taxpayers have not filed their updated correct ITRs (Income Tax Returns) even after the tax department approaching them.

The Income-Tax Department  launched multi-city raids on 14 july 2025 as part of a tax evasion scrutiny against those entities which assist certain individuals avail bogus deductions in their returns by claiming a variety of exemptions, official sources said.

Certain individuals and their tax advisors like filers and accountants, who help them claim bogus exemptions, are being searched as part of the operation.

Analysis reveals unlimited misuse of deductions under sections 10(14), 80GG, 80E, 80D, 80EE, 80EEA, 80G, 80GGA, and exemptions u/s 10(13A) and others, without actual eligibility. Employees of MNCs, PSUs, and government entities have also been identified as wrongfully claiming these benefits. In many cases, salaried individuals have filed returns with fake deduction claims to reduce taxable income or claim refunds

Huge revenue loss and Delay in Refunds

Such actions, the release claimed, not only create a huge revenue loss but also increase the burden on honest taxpayers and delay genuine refunds.