Claimed Section 80GGC deduction for political donations? Avoid tax troubles with this tip

In the past few years, many taxpayers have falsely claimed deductions against political donations under Section 80GGC for a higher income tax refund.

While some did it thinking they wouldn't get caught by the tax department, many did so without even knowing the repercussions of claiming tax refunds against fake deductions.

However, the mistake is now coming back to haunt them.

The tax department is sending notices to such taxpayers who claimed a deduction against political donations and asking for proof. If you have also received such a notice or alert on SMS, there is a way out for you. Read on to understand.

What's happening?

The tax department has been sending notices via SMS, e-mail to taxpayers who have previously claimed a deduction against political donations.

The department is asking taxpayers to submit valid proof of political donations; failing which, such taxpayers will be liable to pay penalties.

Further, the tax department has also urged such taxpayers to match their claims with facts.

"Got an SMS/E-mail from the Income tax Dept. on 80GGC? Don't ignore the communications. It relates to you claimed deduction for political donations. Review your ITR carefully, incorrect claims can lead to scrutiny or penalties. be responsible. Act now," the Income Tax Department said in a post on X.

What's the fix?

If you have made the political donation and claimed the deduction, then you need not worry. All you need to do is submit the proof of donation while responding to the Income Tax notice.

In case you have falsely claimed income tax deduction under Section 80GGG against donations to political parties, including by mistake, then you can still take a corrective step to avoid further troubles.

If you have claimed Section 80GGC deduction by mistake, then you can revise your return or file ITR-U, pay due taxes and interest, and also return the excess refund.

"If 80GGC deduction is claimed by mistake, then kindly revise your return or file ITR U, pay due taxes and interest, return excess refund. Ignoring the communication may lead to scrutiny or penalty. Correct it before it costs you," the tax department said.

Updated ITR (ITR-U) can be used to rectify errors or omissions and update your previous income tax returns.

Currently, ITR-U can be filed within four years from the end of the relevant assessment. For example, ITR-U for FY 2024-25 can be filed between April 1, 2026, to March 31, 2030.