CBDT warns taxpayers against bogus claims
The Central Board of Direct Taxes (CBDT) has issued a strong advisory urging taxpayers to avoid making bogus deduction claims and bogus exemptions while filing their Income Tax Returns (ITRs). The warning comes after investigations revealed that certain intermediaries were filing fraudulent returns on behalf of taxpayers often for commission by misusing provisions of the Income Tax Act, 1961.
According to the press release dated 13th December 2025, the Income Tax Department discovered that several intermediaries have been operating networks across India to file returns showing bogus donations and deductions especially under sections related to donations to Registered or Unregistered Political Parties and Charitable Institutions. Many of these entities were found to be non-operational, non-filers or even used as fronts for hawala transactions and cross-border remittances disguised as donations.
CBDT stated that follow-up searches and enquiries have led to incriminating evidence of bogus CSR activities and false donation receipts being used to claim tax benefits. The Department has taken firm enforcement actions against such entities and individuals engaged in this malpractice.
Data-Driven Approach to Detect Bogus Claims
CBDT has intensified its data-driven monitoring to identify high-risk deduction claims. One such pattern has been detected in cases where taxpayers have misused Section 80GGC or 80G by claiming deductions without authentic documentation or donation proof.
The department noted that a large number of taxpayers had filed ITRs for Assessment Year 2025–26 claiming deductions to dubious entities. In response, a “NUDGE” campaign has been launched to remind and caution taxpayers through emails and SMS messages about these irregularities. These communications being sent from 12th December 2025 aiming to educate taxpayers and encourage voluntary compliance before penalties or scrutiny actions are initiated.
Key Advisory for Taxpayers
CBDT has urged taxpayers to ensure that their correct mobile number and email ID are updated with the Department to avoid missing any official communication. Taxpayers are also advised to verify the genuineness of donations before claiming deductions and to retain valid receipts issued by recognized institutions. The Board emphasized that taxpayers should stay informed through official channels and refer to the Income Tax Department’s website for authentic updates.
CBDT’s Message
“Every taxpayer is advised to ensure that correct mobile and email IDs are mentioned in their filings so that they do not miss out on any communication. Additional information on deduction provisions and filing of Updated Returns is available at www.incometax.gov.in.” This move highlights CBDT’s continued efforts to make compliance simpler, transparent and technology-driven while ensuring that fraudulent activities are curbed effectively.
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