Quick Summary
The Income Tax department in Hyderabad has uncovered a massive tax fraud scheme involving IT professionals who falsely claimed tax refunds by making fraudulent donations to registered unrecognised political parties (RUPPs). The scam, valued at ₹110 crore, exploited Section 80GGC of the Income Tax Act, which provides tax deductions for genuine political contributions. Modus Operandi of the Fraud According to reports, IT professionals from 36 companies claimed to have donated large sums to pol
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FAQ :
The tax refund scam uncovered in Hyderabad is valued at £110 crore.
IT professionals claimed fraudulent tax refunds by making fake donations to registered unrecognised political parties (RUPPs) and claiming deductions under Section 80GGC of the Income Tax Act.
The scheme was discovered when tax officials noticed that multiple IT employees were using a common email address to file their fraudulent claims.
Section 80GGC of the Income Tax Act, which provides tax deductions for genuine political contributions, was exploited.
Those found guilty must file an updated return (ITR-U) by March 31, 2025, to avoid a 200% penalty.
The Income Tax department is conducting awareness sessions at major IT and financial firms to caution employees against exploiting Section 80GGC and to guide them on legitimate tax filings.
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