Patna/Ranchi: The Income Tax Department has launched a nationwide crackdown on individuals and entities allegedly claiming fraudulent tax refunds by submitting fake donation receipts in the names of charitable institutions.
Officials said the action comes amid growing misuse of provisions under Section 80G of the Income Tax Act, which allows individuals to claim a deduction of either 50% or 100% of donations made to registered charitable trusts and institutions. Similar exemptions are also provided under Section 80GGA for donations towards scientific research or rural development.
However, tax authorities say many taxpayers have been inflating deductions by presenting fake receipts without actually making any donations, leading to significant losses for the exchequer.
In one of the latest operations linked to this drive, the Income Tax Department raided the residence and office of Mukesh Kumar Jha in Ranchi. Officials said Jha is suspected of facilitating fraudulent refunds for several taxpayers, including individuals based in Patna, and has been questioned by the department.
Sources within the department said hundreds of taxpayers who allegedly claimed refunds on the basis of fake bills, bank statements and receipts have been served notices and summoned for questioning.
Tax authorities have warned that individuals making bogus claims could face penalties amounting to 200% of the evaded tax, in addition to prosecution that carries a potential jail term ranging from three to seven years.
