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The Income Tax Department has intensified checks on tax refund claims after uncovering widespread misuse of donation-related deductions.

Officials say several taxpayers claimed refunds by showing fake donations to political parties and charitable institutions, often with the help of intermediaries. The department has now warned that such practices are under close watch and may lead to strict action.

The move comes as refund processing has slowed for many taxpayers, with authorities verifying whether deductions claimed are genuine before releasing money.

According to the Income Tax Department, file returns on a commission basis. These agents allegedly inflated or fabricated deductions to lower tax liability and claim higher refunds.

A large number of these false claims were linked to donations made to Registered Unrecognised Political Parties, or RUPPs, and certain charitable institutions. In a post on X, the department said many of these entities were non-operational, did not file returns regularly, and were not engaged in real political or charitable activity.

"It was observed that a huge amount of bogus claims have been made on account of donation to Registered Unrecognised Political Parties (RUPPs) or Charitable Institutions and reduced their tax obligations, and have also claimed bogus refunds," the Income Tax Department said.

Officials added that enforcement actions showed these entities were used as conduits to route unaccounted money and issue fake donation...

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