New Delhi: The Income Tax department has launched a sweeping verification drive to expose fraudulent tax benefit claims filed by assessees, often with the assistance of professional intermediaries, in what the authorities described as an organised racket to abuse tax incentives.
These rackets are operated by certain people who prepare income tax returns (ITR) and intermediaries who file them, said an official statement from the Central Board of Direct Taxes (CBDT). Taxpayers are often lured into these fraudulent schemes with promises of inflated refunds in return for a commission.
Employees of multinational companies, public sector units, government bodies, academic institutions, and entrepreneurs are among those implicated, the I-T department said. Investigations are underway in 150 premises.
This drive follows a detailed analysis of the misuse of tax benefits under the Income Tax Act, often in collusion with professional intermediaries, CBDT said.
Data analysis has revealed misuse of the facility allowed under the law to deduct certain expenses while computing the taxable income. These allowed deductions include house rent allowance, donations to political parties, interest on education loans, medical insurance premium, interest on first home loan and medical expenses for serious ailments.
“Investigations have uncovered...
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