CBDT's Data Crackdown Targets Bogus Tax Deductions, RUPPs

• CBDT intensifies data-led crackdown on bogus tax deductions, particularly for donations to political parties and charitable trusts.
• Advanced analytics revealed widespread misuse of deduction provisions, leading many taxpayers to voluntarily revise returns after official alerts.
• Investigations uncovered organized networks of intermediaries facilitating fake donation claims to non-operational RUPPs and charities to reduce tax liabilities.
• The CBDT launched a 'NUDGE' campaign, sending advisories to taxpayers to encourage voluntary correction of errors and withdrawal of incorrect claims.
• Risk profiling and data analysis identified suspicious claims under Sections 80GGC and 80G, prompting many to update returns for current and previous assessment years.

Why It Matters: CBDT's data-led crackdown on fake deductions means taxpayers must be vigilant.