<ul data-eligibleForWebStory="false"><li>Country-wide IT raids were conducted on fraudulent claims for tax exemption to political parties following an expose by businessline on abuse of registered unrecognised political parties (RUPPs) to launder electoral funding.</li><li>Sleuths from 14 Directorates of Income Tax across the country raided 125 persons in about 200 locations to uncover fraudulent claims involving misdeclarations and exemptions under the Income Tax Act.</li><li>The Central Board of Direct Taxes (CBDT) used data analytics and AI tools to process information about organised rackets, Chartered Accountants' involvement, and false filing of IT returns.</li><li>Around six lakh taxpayers had claimed deductions for political donations over the last two years, leading to delisting of 354 ghost RUPPs by the Election Commission earlier this year.</li></ul>

Country-wide IT raids on fraudulent claims for tax exemption to political parties

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