The Income Tax Department has started nationwide verification so that fake claims can be fought in India news

New Delhi: The Income Tax Department on Monday launched a nationwide verification operation, which targets individuals and institutions, which provides convenience of cut and exemption fake claims.The exercise is not limited to deduction for donations for low-term political parties and donations, but belongs to health insurance and medical expenditure (Sec 80D and 80DB IT Act), HRA (SEC 10 (13A), for the purchase of interest on education and home loans (SEC 80E, 80EE and 80EEB). Under the lens, they are MNC employees, public sector companies, government bodies, educational institutions and entrepreneurs who have claimed cuts without valid justification.IT department exploited several databases to identify potential criminals The IT department is now ready to take strict action against the claims of continuous fraud, including punishment and prosecution wherever applicable is applied. The IT department said that ongoing verification exercises in 150 campuses expect significant evidence including digital records, which will help eliminate the network behind these schemes and ensure accountability.This action follows a detailed analysis of “misuse of tax benefits under the IT Act, 1961, 1961, often in connivance with professional intermediaries, it said. It said that the investigation has highlighted the “organized racket” operated by some ITRs and middlemen, who are filing returns, claiming fictional cuts and discounts. This step is a sign for individuals who take shortcuts and claim without evidence of cuts or expenses shown in returns.Tax authorities exploited several databases to identify potential criminals. It made search and seizures in several states including Maharashtra, Tamil Nadu, Delhi, Gujarat, Punjab and MPs in many states, where it found evidence of fraud claims.CBDT stated that the action follows an outreach organized program, asks taxpayers to modify their returns if the discrepancies are noted. “As a result, around 40,000 taxpayers have updated their returns in the last four months, voluntarily withdrawing false claims of Rs 1,045 crore. However, many do non-compliance, possibly under the influence of the mastermind, under the influence of the mastermind behind these theft rackets.