A nationwide investigation by the Income-Tax (IT) Department into Registered Unrecognised Political Parties (RUPPs) has unearthed a racket involving bogus political donations exceeding ₹5,500 cr, allegedly routed through 36 shell parties over three years, involving more than 1.6 lakh suspicious donors, sources told ET.
According to officials privy to the probe, the scheme involved round-tripping of funds, where money donated to these political parties was returned in cash to the original donors after deducting a small commission, allowing them to falsely claim deductions under Section 80GGC of the Income-tax Act. This, the officials said, resulted in massive losses to the exchequer running into thousands of crores.
"This often involves round-tripping, where funds are returned to the original donors who then claim fraudulent tax deductions, resulting in a direct loss of thousands of crores in tax," an official said.
On July 14, the department conducted a coordinated action across multiple regions, covering more than 150 premises linked to intermediaries, RUPPs, and professionals, including chartered accountants. The exercise exposed 1.53 L I-T returns claiming bogus deductions worth ₹4,478 cr.
According to officials privy to the probe, the scheme involved round-tripping of funds, where money donated to these political parties was returned in cash to the original donors after deducting a small commission, allowing them to falsely claim deductions under Section 80GGC of the Income-tax Act. This, the officials said, resulted in massive losses to the exchequer running into thousands of crores.
"This often involves round-tripping, where funds are returned to the original donors who then claim fraudulent tax deductions, resulting in a direct loss of thousands of crores in tax," an official said.
On July 14, the department conducted a coordinated action across multiple regions, covering more than 150 premises linked to intermediaries, RUPPs, and professionals, including chartered accountants. The exercise exposed 1.53 L I-T returns claiming bogus deductions worth ₹4,478 cr.
You may also like
“In your arms, everything makes sense”-Gabrielle Union-Wade's daughter Kaavia James leaves her teary-eyed with a heartfelt message on her 53rd birthday
US Senate moves to block Trump's global tariffs in rare bipartisan rebuke
IPO-Bound Lenskart Nets INR 3,268 Cr From Anchor Investors
All fireworks banned in 12 UK areas from Friday with £5,000 fine and 6 months prison
The Chase's Paul Sinha calls out player's minor rule-break before eye-watering win
