The Income Tax Department has launched a nationwide crackdown on individuals and entities involved in large-scale fraudulent claims of deductions and exemptions in income tax returns (ITRs), following evidence from past searches and voluntary revisions by over 40,000 taxpayers, who collectively paid 1,045 crore in additional tax.
The operation targets a widespread racket allegedly run by rogue ITR preparers and intermediaries, who have misled employees of multinational corporations, PSUs, government bodies, academic institutions, and entrepreneurs into inflating refunds in exchange for commissions.
“The Income Tax Department initiated a large-scale verification operation across multiple locations in the country on 14th July 2025, targeting individuals and entities facilitating fraudulent claims of deductions and exemptions in Income Tax Returns (ITRs). This action follows a detailed analysis of the misuse of tax benefits under the Income-tax Act, 1961, often in collusion with professional intermediaries,” said a statement from the Income Tax Department on Monday.
“To identify suspicious patterns, the Department has leveraged financial data received from third-party sources, ground-level intelligence, and advanced artificial intelligence tools. These findings are further substantiated by recent search and seizure...
The income tax department has initiated a nationwide verification operation targeting fraudulent claims of deductions and exemptions in I-T returns. This action follows the discovery of organized r...