Income Tax Department Issues SMS Alerts on Section 80GGC Deductions – Beware of False Claims!
The Income Tax Department has begun sending SMS alerts to taxpayers who claimed Section 80GGC deductions over the last three assessment years (AY 2022-23, 2023-24, and 2024-25).
What is Section 80GGC?
Section 80GGC allows taxpayers to claim tax deductions for donations made to political parties or electoral trusts. However, any false or inflated claims under this section could lead to scrutiny notices, penalties, and interest charges, potentially exceeding 100% of the tax amount.
Warning Against Fraudulent Tax Claims
The department has issued this alert as a preventive measure to identify fraudulent tax deduction claims. If you have mistakenly claimed an ineligible deduction, now is the time to correct your tax filings before stricter actions are taken.
Massive Crackdown on Tax Fraud
Recently, the Income Tax Department forced over 90,000 taxpayers to withdraw wrongful claims amounting to ₹1,000 crore. A reputed Chartered Accountant (CA) discussed this major crackdown in a viral YouTube video, warning taxpayers about the risks of incorrect deductions.
What Should Taxpayers Do?
- Verify your tax deductions under Section 80GGC.
- Ensure all donations made to political parties or electoral trusts are genuine and backed by valid receipts.
- If you’ve made a false claim, consider voluntary correction to avoid scrutiny and penalties.
With the Income Tax Department intensifying its monitoring, taxpayers are advised to stay compliant and avoid unnecessary tax troubles.
