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SMS FROM INCOME TAX DEPARTMENT REGARDING POLITICAL DONATION AND CONFUSED TAX PAYERS.......OUR VIEWS ON IT

Our Views on SMS from the Income Tax Department about Verification of deductions claimed in your ITR.

The Income Tax Department has recently sending SMS alerts to salaried assessees who claimed deductions under Section 80GGC in the last three assessment years (AY 22-23, 23-24, and 24-25). Section 80GGC of the Income Tax Act, 1961, allows individuals to claim a deduction for contributions made to registered political parties or electoral trusts, provided the payment is made through non-cash modes. The political party must be registered under Section 29A of the Representation of the People Act, 1951. While the department’s communication may sound alarming, there’s no need to panic if your donation claims are legitimate.

This is simply a measure to identify potentially fraudulent claims. Why the Income Tax Scrutiny? It has come to light that the Income Tax Department has identified sizable salaried taxpayers who have wrongly claimed deductions total  amounting to +₹1,000 crore in their income tax returns (ITRs). The department’s objective is to ensure that the deductions are being claimed correctly and to address any discrepancies.

What Should You Do If You’ve Made a Political Donation?

If you’ve made donations under Section 80GGC in the past three years, ensure you have the following documents ready in case of any inquiries: Donation receipt from the political party or electoral trust Bank statement showing the payment made Any acknowledgment letter or confirmation received for the donation

What If Your Claim Is Correct? If you’ve genuinely donated and your claim is accurate, there’s nothing to worry about. No immediate action is required. However, it’s always wise to keep your documentation organized and available for verification.

What If the Claim Was Made in Error? If you’ve wrongly claimed a deduction under Section 80GGC that you weren’t entitled to, it’s advisable to rectify the error by filing an updated return. Taking corrective action now can help you avoid penalties and potential legal complications in the future.

Our Views: Stay calm, keep your records in order, and remember that this is just a precautionary measure by the Income Tax Department. If your donation claims are genuine, you’ll have nothing to fear. Ensure compliance, stay proactive, and follow good governance………….


DISCLAIMER: Above our views are personal and informative purpose only. One should take advise of their consultants and act accordingly




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