Overview

• Raids targeted individuals and entities in Maharashtra, Tamil Nadu, Delhi, Gujarat, Punjab and Madhya Pradesh as part of a large-scale verification drive
• Over the past four months, roughly 40,000 taxpayers voluntarily revised their returns, withdrawing ₹1,045 crore in baseless deductions
• Investigators leveraged AI analytics, third-party financial records and on-the-ground intelligence to pinpoint suspicious ITR filings
• Probes exposed organized networks of ITR preparers and intermediaries exploiting sections such as 10(13A), 80GGC, 80E and 80DDB to claim false exemptions
• The department has signaled that it will impose penalties and initiate prosecutions against persistent offenders who ignore the compliance window