Claimed Donation Deduction: Income Tax's New TAXASSIST Tool Could Flag You for Scrutiny:

Claimed Donation Deduction: Income Tax's New TAXASSIST Tool Could Flag You for Scrutiny

The Income Tax Department has launched "TAXASSIST" to help taxpayers to navigate departmental communications and keep their finances in check, to remind them of key Income Tax deadlines. This campaign is designed to guide, support, and simplify the Tax compliances. Expressing scenarios like Political donations, Income Tax Department elaborated that for example,

• If 80GGC deduction is Claimed by Taxpayer Mistake
• Then Taxpayer should Revise their return or file ITR U
• He/She should pay due taxes & interest and Return the excess refund

This communication will be made by "TAXASSIST" and ignoring the communication may lead to scrutiny or a penalty from the Income Tax. Thus, one should correct it before it costs us. Explaining the fraudulent 80GGC claim, the department warned that fake political donations, non-genuine donations to political parties, or claiming donations just for a refund are considered as tax evasion. Taxpayers should revise their ITR or file ITR-U before it is too late. Timly action will avoid scrutiny & legal action. What if you made a genuine Claim? If you have made a genuine donation under section 80GGC of the Income Tax Act by donating to a legally registered political party, don't worry. Keep valid receipts & bank transaction proof. They may be required for verification.