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Raids across India on political parties over tax fraud, funding

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Raids across India on political parties over tax fraud, funding

Tax raids are underway at over 100 premises across India – in Gujarat, Delhi, Uttar Pradesh, Maharashtra, Madhya Pradesh, Chhattisgarh, and Haryana, among other states.

Income Tax Generic

Several big businesses and individuals are now under the radar of the Income Tax department (Representational)

Several registered unrecognised political parties (RUPP) across the country are being raided by the income tax officials for allegedly duping the national exchequer of crores of tax money. A coordinated action was launched by the department against certain RUPPs, their promoters and linked entities to probe the source of their income and expenditure, news agency PTI reported, quoting sources.

Raids are underway at over 100 premises across India – in Gujarat, Delhi, Uttar Pradesh, Maharashtra, Madhya Pradesh, Chhattisgarh, and Haryana, among other states.

The action was initiated after the Election Commission of India flagged small political parties accepting donations and then providing entries for tax deductions to those donating. In this way, the money coming in as donations goes back in cash after tax deductions to those making the donations.

Political parties accept money from patrons through entry operators who would return a major part of the money after deducting a small percentage and tax. This way, the national exchequer is cheated and duped of crores of tax money, officials told India Today TV.

Several big businesses and high-value individuals managed to avail tax deductions this way and are now under the agency’s radar, they added.

A report will be prepared and notices will be issued to the entities and people concerned, seeking an explanation, once the search and seizure is complete.

Legal action will be initiated by the Income Tax Department once a report is prepared.

Also Read: | Maharashtra businessman held for availing Input tax credit of over Rs 40 crore

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#Raids #India #political #parties #tax #fraud #funding

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