The Income Tax Department's Jharkhand unit has reportedly sought approval from the CBDT to initiate the cancellation of licences of several Chartered Accountants involved in facilitating tax evasion in the guise of political funding. Sources revealed that some of these CAs are also among the tax evaders.
According to a report, hundreds of professionals from Jharkhand and Bihar allegedly evaded taxes while donating funds to the Aam Janmat Party, which is registered in Bihar but has office bearers originally from Gujarat.
The investigation shows that professionals from Madhubani, Purnia, Supaul, East Champaran, West Champaran in Bihar and Ranchi, Jamshedpur, Dhanbad in Jharkhand, made donations claiming exemptions under Section 80GGC. The political party reportedly returned the donations to the contributors through various channels after deducting a 5% cut on each contribution.
Officials stated that the CAs had signed the Aam Janmat Party's balance sheets without conducting proper audits. Following CBDT approval, the IT department plans to approach the Institute of Chartered Accountants of India (ICAI) to cancel the licences of the errant professionals.
Sources also noted that around 50 CAs are directly involved as tax evaders, while several others are employed with reputed firms. The IT department is currently issuing notices, asking individuals to withdraw their donations and update their tax returns, with many reportedly complying.
Earlier in August, a large IT team from Jharkhand, comprising over 50 officials, conducted searches at the premises of Aam Janmat Party office bearers and discovered that the party had received Rs 2000 crore in political funding.
Investigations are ongoing, and authorities expect the number of tax evaders and the total amount involved to rise in the coming days.
This move reflects the IT department's intensified efforts to crack down on tax evasion linked to political funding and ensure accountability among chartered professionals.
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