Income-tax raiding individuals for Fake deduction claims
The Income Tax department observed that many taxpayers who file Income Tax Return (ITR) were misusing the tax benefits available under the Income Tax Act, 1961, often with the help of professionals acting as intermediaries. Investigations revealed that many ITR preparers and intermediaries are filing ITR with fake deductions and exemptions, such as submitting fake TDS returns to claim refunds.
Therefore, the Income Tax Department launched a major verification operation at several places in India. The operation targets people and organisations that are helping others make fake claims for tax deductions and exemptions in their Income Tax Returns (ITRs).