New Delhi, Dec 13: The Central Board of Direct Taxes (CBDT) acted upon many intermediaries who were involved in filing Income Tax (I-T) returns with bogus claims of deductions and exemptions under the Income Tax Act, the Ministry of Finance informed on Saturday.
The exercise revealed that some intermediaries have established a network of their agents all over India for filing returns with incorrect claims on a commission basis.
“It was observed that huge amount of bogus claims have been made on account of donation to Registered Unrecognised Political Parties (RUPPs) or Charitable Institutions and reduced their tax obligations and have also claimed bogus refunds,” the ministry stated.
Evidence gathered from enforcement actions indicated that RUPPs, many of which were non-filers, non-operational at their registered addresses, and are not engaged in any political activity, were being used as conduits for routing funds, hawala transactions, cross-border remittances and issuing bogus receipts for donations. (IANS)
