# Income Tax Department Sends Mass Mail to Taxpayers Over Donation Claims in ITR (AY 2022-23 to 2024-25)

Author: C.K. Gupta
Published: 2025-01-29
Categories: Manage Business, Tax Saving, Taxation
Tags: Income Tax Department Sends Mass Mail to Taxpayers Over Donation Claims in ITR (AY 2022-23 to 2024-25)

Source: https://taxgst.in/income-tax-department-sends-mass-mail-to-taxpayers-over-donation-claims-in-itr-ay-2022-23-to-2024-25/

The Income Tax Department has initiated a nationwide crackdown on taxpayers who claimed deductions under **Section 80GGC** for political donations in their Income Tax Returns (ITR) for Assessment Years (AY) 2022-23, 2023-24, and 2024-25. Thousands of taxpayers have received emails urging them to verify their claims and rectify discrepancies by **March 31, 2025**, or face penalties. This move follows heightened scrutiny of bogus donations linked to Registered Unrecognised Political Parties (RUPPs) and mirrors actions taken in previous years, such as AY 2019-20, where deductions worth crores were disallowed.

**Also Read-[How to Check Fake Summons from CBIC Site: Step-by-Step Guide to Verification](https://taxgst.in/how-to-check-fake-summons-from-cbic-site/)**

## **Why Is the Income Tax Department Targeting Donation Claims?**

The department’s latest campaign focuses on curbing fraudulent tax benefits claimed under **Section 80GGC**, which allows 100% deductions for donations to political parties. Investigations reveal that many taxpayers inflated donations or contributed to RUPPs suspected of laundering funds. For instance, in AY 2019-20, over 5,000 cases were reopened, leading to disallowances and penalties.

### **Key Triggers for Scrutiny.**

- **Mismatched Documentation**: Donations without valid receipts, bank statements, or Form 10BE (donation certificates).

- **Suspicious Proportions**: Claims exceeding 50-80% of the taxpayer’s declared income.

- **RUPP Links**: Donations to parties like *Bhartiya Rashtriya Tantra Party* or *Navsarjan Bharat Party*, which lack electoral credibility.

### **What Does the Income Tax Department’s Email Say?**

The email template reads:

> “Dear Taxpayer, It is observed that you have claimed a deduction under Section 80GGC of ₹XXXXX in your ITR for A.Y. 2023-24. Verify the claim and rectify errors by filing an Updated Return (ITR-U) by 31.03.2025.”

**Two Critical Options for Taxpayers.**

- **Genuine Claims**: Retain donation receipts, bank statements, and Form 10BE for future scrutiny.

- **Bogus Claims**: File ITR-U immediately to avoid penalties. Delays could lead to a **200% penalty** if the case enters assessment.

### **Penalties for Incorrect Claims: ITR-U vs. Assessment.**

| Scenario | Additional Tax | Penalty | Deadline |
| --- | --- | --- | --- |
| File ITR-U within 12 months | 25% | Avoids higher penalties | March 31, 2025 |
| File ITR-U within 24 months | 50% | Reduces litigation risk | March 31, 2025 |
| Case Selected for Assessment | 100% tax due | 200% penalty + Income addition | No fixed deadline |

*Source: [Income Tax Portal](https://www.incometax.gov.in/)*

### **Lessons from Past Cases: AY 2019-20 Crackdown.**

**In AY 2019-20, taxpayers who donated to RUPPs faced:**

- **Disallowed Deductions**: Full donation amounts added to taxable income.

- **Penalties**: 50-200% of tax due, depending on intent  3  8 .

For example, a taxpayer claiming ₹10 lakh in donations saw their taxable income rise by ₹10 lakh, with penalties up to ₹6 lakh (200% of tax due).

**Expert Recommendations.**

- **Self-Audit**: Cross-check donations against Form 26AS and Form 10BE.

- **Act Promptly**: File ITR-U before March 31, 2025, to cap penalties at 50%.

- **Legal Defense**: If scrutinized, use precedents like *CIT v. Shree G. Selva Kumari* to challenge disallowances lacking evidence.

### **FAQ Section**

**Q1. What if my donation was genuine but lacks documentation?**

*A*: Without receipts or Form 10BE, the claim may be disallowed. Reconstruct records or seek legal advice.

**Q2. Can donations to unrecognized parties still qualify?**

*A*: Yes, but only if the party is registered under Section 29A of the Representation of the People Act, 1951  14 .

**Q3. What’s the last date to file ITR-U for AY 2022-23?**

*A*: March 31, 2025, for both 25% and 50% penalty brackets  4 .

**Conclusion**

The Income Tax Department’s mass emails signal a zero-tolerance approach toward fraudulent deductions. Taxpayers must act swiftly to verify claims, secure documentation, or file ITR-U. With penalties soaring up to 200% in assessment cases, compliance is no longer optional—it’s a financial safeguard.

*Stay informed with updates from the Income Tax Department or consult a tax expert for personalized guidance.*

*This article synthesizes information from official notices, expert analyses, and judicial rulings to provide actionable insights. Always verify details with a certified tax professional.*

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