Nagpur : In a major crackdown, the Income Tax Department on Monday conducted raids at around 10 locations across Nagpur and the surrounding Vidarbha region as part of a nationwide verification drive against bogus tax deduction claims. The action follows the exposure of a ₹200 crore tax fraud case in Gondia, which raised red flags within the department.
The Nagpur office of the Income Tax Department participated in the broader operation, which covered over 150 locations across India. The Central Board of Direct Taxes (CBDT) launched this campaign to curb widespread misuse of income tax provisions and fraudulent refund claims made through fake documentation.
Fake Bills Used for Tax Refunds
The Gondia raid revealed large-scale misuse of tax deduction categories, including:
Gold Rate
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- House Rent Allowance (HRA) exemptions
- Political donations
- Interest on education loans
- Medical insurance deductions
- Interest on home loans
- Deductions for electric vehicles
- Donations to charitable and research organizations
- Deductions for critical illness treatments such as cancer
Fraudsters allegedly submitted fake bills and documents under these categories to claim hefty refunds. A financial advisor was found to be at the center of the Gondia case, which was led by a Pune-based Income Tax team.
CAs and Trusts Under Scanner in Nagpur
Sources confirmed that Monday’s raids in Nagpur targeted both residential and office premises. Several Chartered Accountants (CAs) and at least one trust are under investigation. The department has reportedly seized a large number of documents related to fraudulent filings.
Use of AI and Ground Intelligence
Officials stated that the action was based on ground-level intelligence and data analysis using advanced Artificial Intelligence (AI) tools. These tools flagged suspicious refund patterns and irregular deduction claims.
Preliminary findings suggest that taxpayers exploited beneficial provisions under the Income Tax Act to claim undeserved refunds amounting to crores of rupees.
Ongoing Investigation
The Income Tax Department is now scrutinizing the seized documents to trace the full extent of the fraud. Further legal action is expected once verification is complete.
This latest operation highlights the department’s intensified efforts to clamp down on tax fraud using both traditional surveillance and cutting-edge technology, particularly in key regions like Nagpur.
