Income Tax Dept red flags ineligible deduction claims in ITRs

Posted on by Vividh Bharathi

New Delhi, Dec 23 (IANS) The Central Board of Direct Taxes (CBDT) has launched a “Nudge” campaign for the 2025–26 assessment year on Tuesday, asking taxpayers to voluntarily review and correct deduction or exemption claims identified as potentially ineligible through the Income Tax Department’s advanced data analytics.

Some of these claims, which have been filed in the income tax returns (ITRs), involve cases of bogus donations to Registered Unrecognised Political Parties (RUPPs), according to the statement issued by CBDT, the apex body of the Income Tax Department.

The initiative, which is advisory in nature, requires identified taxpayers to file revised income-tax returns (ITRs) by December 31, 2025. Those who miss the deadline are allowed to file updated returns from January 1, 2026, but with additional tax liability as permitted under law.

“The department has launched a data-driven NUDGE campaign for AY 2025–26, encouraging taxpayers to voluntarily review deduction claims identified as potentially ineligible through risk analytics. The outreach reflects a trust-first approach enabling voluntary correction wherever required,” the statement said.

The tax authority said it has observed that certain taxpayers claimed ineligible refunds by availing deductions or exemptions to which they were not entitled, resulting in understatement of income.

Under its risk management framework and advanced data analytics, cases for AY26 were identified where bogus donations to registered unrecognised political parties and other ineligible deductions or exemptions appeared to have been claimed.

The CBDT also flagged instances where incorrect or invalid Permanent Account Numbers (PANs) were quoted, as well as errors relating to the extent of deductions or exemptions claimed.

Under the campaign, SMSs and Email advisories are being issued this month to such taxpayers on their registered mobile numbers and emails.

CBDT has advised taxpayers to ensure that the correct mobile and email IDs are mentioned in their filings with the Department so that they do not miss out on any communication.

The Nonintrusive Usage of Data to Guide and Enable (NUDGE) campaign is a taxpayer-friendly measure to strengthen voluntary compliance. Additional information on deduction provisions and filing of Updated Returns is available at www.incometax.gov.in.

–IANS

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ED attaches Rs 11.14 crore assets of Suresh Raina and Shikhar Dhawan in 1xBet case

New Delhi, Nov 6 (IANS) The Enforcement Directorate (ED) has provisionally attached movable and immovable assets worth Rs 11.14 crore belonging to former Indian cricketers Suresh Raina and Shikhar Dhawan under the Prevention of Money Laundering Act (PMLA), 2002, in connection with its ongoing probe into the illegal offshore betting platform 1xBet, the agency said on Thursday.  

According to the ED, the attachment includes mutual fund investments worth Rs 6.64 crore held in Raina’s name and an immovable property valued at Rs 4.5 crore belonging to Dhawan.

The action stems from multiple FIRs registered by various state police agencies against the operators of 1xBet and its surrogate brands – 1xBat and 1xBat Sporting Lines – accused of promoting and facilitating unlawful online betting and gambling operations across India.

“Investigation revealed that both Suresh Raina and Shikhar Dhawan knowingly entered into endorsement agreements with foreign entities for the promotion of 1xBet through its surrogates,” the ED said in its press note.

“These endorsements were made in return for payments routed through foreign entities to conceal the illicit origin of the funds, which are linked to proceeds of crime generated from illegal betting activities,” it added.

ED officials further found that 1xBet operated without authorisation in India, targeting users through social media, online videos, and print advertisements. To disguise the source of funds, payments were layered through multiple entities and foreign accounts.

During the investigation, the agency uncovered a laundering trail exceeding Rs1,000 crore. It was found that over 6,000 “mule” bank accounts were used to collect money from Indian bettors, routed through several payment gateways.

Many merchants on these platforms were onboarded without proper KYC verification, and their declared business activities did not match transaction patterns.

Searches were conducted at four payment gateways, leading to the seizure of incriminating evidence. Over 60 bank accounts linked to the operation have been frozen, with funds exceeding Rs 4 crore blocked so far.

Issuing a public advisory, the ED urged citizens to refrain from engaging in or promoting online betting and gambling platforms, warning that aiding such activities may lead to prosecution under PMLA, which carries imprisonment of up to seven years and attachment of assets derived from illegal proceeds.

Further investigation into the case is underway.

–IANS

sas/dan

Dr. Manmohan Singh: India’s visionary leader who transformed the nation’s economy

New Delhi, Dec 26 (IANS) Former Prime Minister Dr. Manmohan Singh, who died at the age of 92 here on Thursday, was a visionary leader who is credited with bringing transformations to the country’s economy when it was passing through a rough phase.

Born on September 26, 1932, in Gah, West Punjab (now in Pakistan), Dr. Manmohan Singh was a celebrated economist and politician who left an indelible mark as the Prime Minister. He headed the Congress-led government at the Centre from 2004 to 2014.

As the first Sikh to hold the office of PM, Dr. Singh’s leadership was often credited for steering India through a period of significant economic transformation.

He remained instrumental in elevating the country to the ranks of major global economic powers.

His academic journey was also remarkable. It began at Panjab University, where he obtained a Bachelor of Arts and Master of Arts degree in Economics in the early 1950s.

He continued his studies at the University of Cambridge, securing a ‘First Class Honours’ degree in Economics in 1957.

He later completed his D.Phil. at Nuffield College, Oxford in 1962. Dr. Singh’s early professional career was shaped by his role as an educator at Punjab University, the Delhi School of Economics, and at the UN Conference on Trade and Development (UNCTAD).

The political journey of Dr Singh began in 1971 when he was appointed as an Economic Advisor in the Ministry of Commerce. He later acquired pivotal roles like Chief Economic Advisor (CEA) and Secretary in the Ministry of Finance.

It was his tenure as Finance Minister from 1991 to 1996 that marked a crucial turning point for India’s economy.

During this period, India faced an economic crisis, and Singh’s bold reforms helped transform the country’s economic path. He implemented crucial liberalisation measures, devalued the rupee, reduced tax burdens, and attracted foreign investment, stabilising India’s economy and setting the stage for future growth.

After Congress’ victory in the Lok Sabha elections in 2004, Congress leader Sonia Gandhi appointed Singh as the Prime Minister. India experienced significant economic growth under Singh’s leadership thereafter.

His regime was focused on inclusive growth, poverty alleviation, and development in various sectors such as education, food security, and employment. His policies paved the way for economic expansion, lifting millions out of poverty.

Dr. Singh was elected again in 2009. However, his second term was full of turmoil, as it was marred by challenges such as inflation, corruption scandals, and criticisms surrounding administrative inefficiencies. Despite these controversies, his government continued to make significant strides in economic and social policy, say observers.

Dr. Singh’s tenure as Prime Minister was marked by several landmark reforms and initiatives.

His government passed legislation guaranteeing food, education, employment, and information rights for citizens. His leadership also solidified India’s role as a prominent player in the global economy, with reforms that helped the country navigate a rapid phase of growth.

Singh was honoured with the Padma Vibhushan, India’s second-highest civilian award, in 1987, recognising his contributions to economic policymaking.

According to some political commentators, despite facing flak over corruption scandals like the 2G spectrum allocation scam and the Commonwealth Games controversy, Dr. Singh’s tenure remained a defining period in Indian political history.

–IANS

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