New Delhi: The Central Board of Direct Taxes (CBDT) has taken action against several intermediaries involved in filing Income Tax returns (ITRs) with fraudulent claims of deductions and exemptions under the Income Tax Act, the Ministry of Finance announced on Saturday.
Investigations revealed that some intermediaries had set up a network of agents across India to submit returns with incorrect claims on a commission basis.
The ministry stated, “It was observed that 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.”
Enforcement actions indicated that many RUPPs, which were non-filers, non-operational at their registered addr

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