CBDT Sends Alerts to Taxpayers Over Bogus Donation Claims to Fake Political Parties
December 13, 2025
The Income Tax department has begun sending SMS and email advisories to taxpayers over wrongful deduction claims tied to unrecognised political parties and fake charitable institutions. The Finance Ministry announced this on December 13, 2025. The Central Board of Direct Taxes (CBDT) found through data analysis that many taxpayers made bogus claims for donations to Registered Unrecognised Political Parties (RUPPs) and charitable bodies to cut their tax bills and claim fake refunds.
A special "targeted NUDGE campaign" aims to give taxpayers a friendly chance to correct their Income Tax Returns (ITRs) and withdraw wrong claims. From December 12, 2025, advisories are sent to taxpayers on their registered mobile numbers and emails.
The CBDT revealed that many RUPPs are not real political entities. They often do not file returns, are inactive, and do not do political work. Instead, they act as channels for illegal activities like hawala transactions, cross-border money transfers, and issuing fake donation receipts.
Follow-up searches found strong evidence against these RUPPs and trusts involving bogus donations by individuals and fake Corporate Social Responsibility (CSR) expenses by companies. Data analytics show many taxpayers likely claimed deductions for suspicious donations or failed to provide required proof to verify those entities.
Many taxpayers have already updated their ITRs for the current assessment year 2025-26 and previous years. The CBDT advised everyone to keep their correct mobile and email details updated to avoid missing such important communication.
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Tags:
Income tax
Cbdt
Tax Deduction
Fake Donations
Rupps
Taxpayers
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