Intro:
Fake political donation and fee claims have triggered fresh income tax raids across India. The crackdown targets suspicious ITR filings—especially those with inflated Section 80G donations, tuition fees, and medical bills. Here’s a breakdown of what happened, what’s legal, and how taxpayers can avoid trouble.
Why Are I-T Raids Happening?
The Income Tax Department has launched multi-city raids (July 2025) after detecting a growing trend in bogus claims under:
- Section 80G: Political donations
- Section 80D/80DD/80DDB: Medical expenditure
- Section 80C: Tuition fee and education-related deductions
Sources:
- Preliminary probe flagged ₹10 crore+ worth of suspicious refunds
- Multiple consultants and filers used fabricated receipts or reused PANs to claim deductions
- Raids reportedly covered Delhi, Gujarat, Maharashtra, and Tamil Nadu
Key Sections Under Scrutiny
| Section | Type of Claim | Compliance Requirement |
|---|---|---|
| 80G | Donations to political parties/trusts | PAN of donee, bank proof, and Form 10BE if trust |
| 80C | Tuition fees for up to 2 children | School receipts, name & PAN of institution |
| 80D/80DDB/80U | Medical insurance / critical illness | Insurance policy, hospital bills, Form 10IA (if required) |
Expert Insight:
“These sections are genuine relief tools. But many taxpayers blindly copy past deductions from old ITRs or WhatsApp ‘ITR refund hacks’. That’s what’s leading to audits,” says a Delhi-based CA handling over 300 individual filings.
How Were Fake Claims Detected?
- Same PAN used for donations across unrelated filers
- Identical tuition fee receipts submitted across multiple returns
- Claims of donations to non-existent or deregistered trusts
- Mismatch with AIS/26AS or Form 10BE (for donation claims)
CBDT Clarification on 80G and Form 10BE
As per CBDT Circular No. 4/2023, donors can claim deduction under Section 80G only if:
- The receiving trust is registered under Section 80G(5)(vi)
- The trust issues a Form 10BE with PAN of donor and unique receipt number
- Donations must be made via account payee modes (cheque, UPI, NEFT)
🔗 Official Source – incometax.gov.in
Legal Consequences of False Claims
Under Section 270A of the Income-tax Act:
- Misreporting income or claiming false deductions invites a penalty of 200% of the tax evaded
- Refunds claimed through fraud may trigger prosecution under Section 276C
Practical Tips for Safe Tax Filing
- Keep original proofs – scanned receipts alone are not enough
- Use TRACES portal to match AIS/TIS with your ITR
- Never fabricate donation or insurance details just to boost refund
- If filing for someone else, ensure client signs a declaration of accuracy
How Consultants Can Protect Themselves
- Avoid “guaranteed refund” schemes
- Maintain a digital trail of all documents submitted by the client
- Educate clients on legit limits for medical and tuition fee claims
- Insist on bank statements matching donation or premium payments
Frequently Asked Questions (FAQ)
Q1. Is donation to political parties fully tax deductible?
No. Only donations via banking channel to registered parties under Section 80GGC are eligible. Cash donations above ₹2,000 are not allowed.
Q2. Can I claim tuition fee for coaching centres or private tuitions?
No. Only regular schools, colleges, or universities are allowed under Section 80C, not coaching institutes.
Q3. What if a consultant files fake claims in my ITR without telling me?
You are still responsible. File a revised return immediately and report the consultant to the Income Tax Department.
Summary
Fake donation and medical/tuition fee claims have triggered I-T raids across India. Claims under Sections 80G, 80D, and 80C are under scanner for misuse. Taxpayers and consultants must stay compliant with receipts, Form 10BE, and match with AIS/26AS.
Final Word
False claims in ITR might get you a bigger refund today—but they come with raids, penalties, and prosecution tomorrow. Be honest, file clean, and if in doubt, consult professionals.
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