3 weeks ago
Income Tax Department flags bogus deduction claims via data analytics
In India, the Income Tax Department collects money from people to help run the country.
Some people try to cheat by claiming tax benefits they are not allowed to get.
The department now uses smart computers and data analysis to catch these cheats.
It looks at many records, like bank transactions, property deals, and shopping tax data, to find mistakes.
The department also runs a friendly campaign called SAKSHAM NUDGE.
This campaign gently reminds people when their tax forms have errors and asks them to fix the mistakes.
Because of this campaign, about 1.25 crore people filed their tax forms again with corrections.
They paid around ₹9,493 crore more in taxes.
This extra money helps the government fund schools, roads, and other public services.
The Income Tax Department detected wrongful tax relief and deduction claims using data analytics, verification exercises, and enforcement actions, the Finance Ministry told the Lok Sabha.
The CBDT's analytics system assimilates data from SFT, TDS and TCS records, GST data, high-value bank transactions, and property registrations to flag tax evasion risks.
The SAKSHAM NUDGE campaign led to 1.25 crore revised or updated income tax returns being filed during FY 2024-25 and FY 2025-26.
Additional tax paid through the campaign totaled ₹9,493.66 crore, with an overall revenue impact of ₹12,121.91 crore.
Investigations identified intermediaries including tax return preparers and chartered accountants facilitating fraudulent claims, with actions such as e-verification, searches, reassessments, penalties, and prosecution taken.
- Who
- The Income Tax Department and the Central Board of Direct Taxes (CBDT), with details provided by Minister of State for Finance Pankaj Chaudhary.
- What
- Detection of bogus tax relief and deduction claims through data analytics and technology, along with results of the SAKSHAM NUDGE compliance campaign.
- Where
- India, through a written reply to unstarred questions in the Lok Sabha.
- When
- The written reply was given to the Lok Sabha on 3 August, covering the SAKSHAM NUDGE campaigns of FY 2024-25 and FY 2025-26.
- Why
- To promptly identify tax evasion and fraudulent claims, promote voluntary compliance, and curb misuse of tax benefits.
Key facts
- Agency
- Central Board of Direct Taxes (CBDT)
- Official
- Pankaj Chaudhary, Minister of State for Finance
- Reported to
- Lok Sabha on 3 August
- Revised/Updated ITRs filed
- 1.25 crore
- Additional tax paid
- ₹9,493.66 crore
- Revenue impact of campaign
- ₹12,121.91 crore
- Data sources
- SFT, TDS/TCS records, GST data, high-value bank transactions, property registrations
- Enforcement actions
- E-verification, searches, surveys, reassessments, penalties, prosecution
Quotes
Pankaj Chaudhary
Minister of State for Finance, India
“"The CBDT’s in‑house analytics system assimilates and analyses information as well as transactional data received from third parties to promptly identify potential tax evasion and errors in submitted details."”
livemint.com
Sources
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