Quick Summary
The Directorate of Income Tax (Investigations) has unearthed a massive income tax fraud worth over Rs 500 crore in Pune, exposing how tax professionals exploited loopholes in the return filing system to generate bogus deductions. Officials described it as the largest such scam in recent years, surpassing earlier cases involving manipulation of PAN, TDS credit, and fake trusts. According to senior officers, a group of tax professionals operating in Pune and nearby regions positioned themselves
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FAQ :
The scam is valued at over Rs 500 crore, making it one of the largest such frauds in recent years.
They acted as 'return specialists', luring salaried employees with promises of high refunds and filing fraudulent claims using bogus deductions for housing loans, medical expenses, HRA, and more, all without valid documentation.
Over 10,000 fraudulent claims were filed in the past five years.
The department has initiated action against the involved tax professionals and is identifying taxpayers who received bogus refunds. They are also tightening the return filing system.
Yes, taxpayers cannot escape liability by blaming intermediaries. Any unlawful refund claimed in a taxpayer's name will be reviewed, and penalties and prosecution will apply.
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