Bogus Political Donations, Medical, and Tuition Fee Claims Under Section 80GGC Targeted in Massive Operation
Published on: July 14, 2025
By: BTNI
In a sweeping move to curb tax evasion, the Income Tax Department has launched a massive nationwide operation, raiding over 200 locations across India on July 14, 2025. The crackdown targets fraudulent deductions claimed under Section 80GGC of the Income Tax Act, which allows tax exemptions for donations to registered political parties or electoral trusts. Alongside, authorities are scrutinizing bogus claims related to medical expenses and tuition fees, exposing a web of intermediaries allegedly facilitating these false deductions.
The raids follow the department’s “NUDGE” campaign, which urged taxpayers to correct suspicious claims voluntarily. Despite warnings, many failed to file updated Income Tax Returns (ITRs), prompting this large-scale action. Investigators have uncovered schemes involving fake political donations, often routed through unregistered entities, as well as inflated or fabricated medical and tuition fee claims, exploiting the paperless ITR filing system.
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This operation, one of the most extensive in recent times, underscores the government’s commitment to ensuring transparency and compliance in tax filings. Taxpayers and intermediaries, including accountants and tax professionals, are under the scanner, with searches expected to continue in the coming days.
Authorities emphasize that genuine donors with proper documentation have no cause for concern, but those with fraudulent claims face severe penalties, including fines up to 200% of the evaded tax under Sections 270A and 271AAC.This bold move sends a clear message: tax evasion through fraudulent deductions will face stringent consequences, paving the way for a more accountable financial ecosystem.
