The Income Tax Department launched extensive raids across multiple cities on Monday, targeting entities and individuals involved in a tax evasion scheme through fraudulent deductions, official sources confirmed. The operation focuses on bogus claims under Section 80GGC for political donations to both registered and unregistered parties, as well as fake deductions for medical insurance, tuition fees, and certain loans. Over 200 premises are under scrutiny, with searches aimed at taxpayers and their advisors, including accountants and filers facilitating these false exemptions.

The crackdown follows the department’s NUDGE campaign, which encourages voluntary correction of unsupported claims. Despite outreach, many taxpayers failed to file updated Income Tax Returns (ITRs), prompting the raids. Investigations reveal intermediaries arranged fake donations, often routed through shell entities, to reduce tax liabilities. The operation, spanning cities like Delhi, Mumbai, Hyderabad, and Bengaluru, underscores the department’s push to curb misuse of the old tax regime’s provisions.

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