Over 1.4 lakhs taxpayers with suspicious claim of ₹4100 crore are on the radar of the Income Tax Department, official sources indicated on Saturday. Now, they are being ‘nudged’ by the Income Tax Department to correct their Income Tax Returns.
“Data analytics flagged over 2 lakh taxpayers who claimed suspicious deductions under Section 80GGC, aggregating to nearly ₹5,500 crore routed through suspicious or non-existent RUPPs (Registered Unrecognised Political Parties) and similar amount of bogus donation to non-genuine charitable organizations,” a source said.
Further the enforcement findings also prompted reversals of bogus deductions by taxpayers. 54,000 taxpayers have already corrected their filings and withdrawn ineligible claims worth approximately ₹1,400 crore and updated their returns.
“Most of these taxpayers have claimed deductions below 5 lakhs. Few companies have claimed very high deductions as well,” the source said.
Another source said that nationwide verification and enforcement actions were carried out on 14 July 2025, covering 150 premises, during which more than 102 RUPPs were identified suspicious for their role in facilitating bogus donation-linked deductions.
It was found that an intermediary was advertising guaranteed refund in cinema halls / social and enticing taxpayers for non-genuine claims of refund on payment of commission.
According to sources, in one of the action, it was found that there was a syndicate of professionals who was operating through whatsapp/telegram channels to find taxpayers looking of reducing tax liability by non-genuine donations to RUPPs or charitable organization.
Investigations also uncovered misuse of CSR-linked trusts, which facilitated bogus donation receipts in exchange for cash-back, thereby undermining both corporate governance norms and political funding rules, sources added.
The Election Commission of India (ECI) has also initiated systematic delisting of non-existent, non-compliant, or inactive RUPPs. So far, ECI has de-listed 808 RUPPs.
It has been learnt that the CBDT has prepared a detailed analytical report capturing these findings, trends, modus operandi, and revenue implications, and shared the same with field formations for coordinated enforcement and compliance action. ECI has also taken cognizance of mushrooming RUPPs which are politically dormant.
