ashish lodhi
@mrjackson

ITR refund scam: Income Tax Dept cracks down on CA-run rackets promising inflated tax refunds

ITR refund scam: Income Tax Dept cracks down on CA-run rackets promising inflated tax refunds

The Income Tax Department has launched a massive crackdown on fraudulent ITR refund claims facilitated by certain chartered accountants and intermediaries. These professionals have been found running organised rackets that lure taxpayers with promises of inflated refunds in exchange for hefty commissions.

The Income Tax Department has started cracking down on certain chartered accountants (CAs) and related professional intermediaries who have been found involved in helping taxpayers claim fake tax deductions and exemptions. Reports suggest that income tax authorities have continued to conduct raids on multiple locations in the country related to income tax return (ITR) preparers and entities.

🧾 Summary Table

FeatureDetails
Scam Value Detected₹1,045 crore bogus refund claims
Taxpayers Involved~40,000 who withdrew false claims
Key Deduction Sections Misused10(13A), 80C, 80D, 80E/EE/EEB, 80G, 80GGC, 80GGA, 80DDB
Modus OperandiFake CAs/agents, bulk ITR filing via temporary emails, inflated claims
Government Tools UsedAI/data analytics, IP tracking, outreach via SMS/email
Regions AffectedMaharashtra, TN, Delhi, Gujarat, Punjab, MP, others
ConsequencesNotices, penalties, blocked refunds, prosecution