Taxpayers, take note: The Central Board of Direct Taxes (CBDT) is ramping up its war on fake deduction claims under Income Tax Act provisions like Sections 80GGC and 80G. On December 13, 2025, CBDT announced it detected widespread misuse via advanced analytics, urging voluntary corrections before penalties hit. Advertisement

The CBDT said enforcement action against multiple tax intermediaries exposed organised rackets that were filing income tax returns using fake deductions and exemptions in exchange for commissions.

Enforcement raids exposed organised rackets run by tax intermediaries who filed returns with bogus donations to Registered Unrecognised Political Parties (RUPPs) and sham charities for commissions. These non-operational entities, often ghost addresses, issued fake receipts

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