Tax dept intensifies action against fake deductions

THE tax department has intensified its action against bogus claims of deductions and exemptions under the Income Tax Act, using a data-driven approach to identify suspicious filings and intermediaries facilitating tax evasion.

- ENS ECONOMIC BUREAU

In a recent exercise, the tax authorities acted against several intermediaries involved in filing income tax returns with incorrect claims on a commission basis. Investigations revealed that these intermediaries had set up nationwide agent networks to file returns claiming fraudulent deductions and exemptions, particularly to reduce tax liabilities and claim bogus refunds.