<h1>Income Tax Department uncovers organized rackets filing fraudulent deduction claims under sections 80G, 80D, 80E</h1> The Income Tax Department conducted large-scale verification operations across multiple locations targeting fraudulent tax deduction and exemption claims. Investigations revealed organized rackets operated by certain tax return preparers and intermediaries filing returns with fictitious deductions under various sections including 10(13A), 80GGC, 80E, 80D, 80EE, 80EEB, 80G, 80GGA, and 80DDB. The department used data analysis, artificial intelligence tools, and third-party financial information to identify suspicious patterns. Search operations in six states uncovered evidence of fraudulent claims involving employees from multinational companies, public sector units, government bodies, and academic institutions. Despite outreach efforts resulting in 40,000 taxpayers voluntarily correcting returns worth Rs.1,045 crore, many remain non-compliant. The department is proceeding with stern action including penalties and prosecution.