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Large-Scale Operation Against Tax Fraud Unveiled The Income Tax Department has launched a massive verification drive across multiple states, targeting widespread abuse of deductions and exemptions in Income Tax Returns (ITRs). This action follows a detailed forensic analysis revealing systemic misuse of provisions under the Income-tax Act, 1961 , in collusion with professional intermediaries and ITR preparers. Organised Rackets Behind Fictitious Claims According to a statement from the Central Board of Direct Taxes (CBDT) , investigations uncovered organised rackets run by certain ITR intermediaries who were systematically filing returns with fictitious claims. These schemes often involved fake deductions and exemptions and even false Tax Deducted at Source (TDS) filings , in a bid to inflate refunds . Many of these returns were facilitated through temporary email addresses , which were later abandoned—causing taxpayers to miss crucial communication from the tax department. ...

Introduction The Central Board of Direct Taxes (CBDT) has achieved a significant milestone through its innovative ‘Nudging Campaign’ , leading to 30,161 taxpayers declaring foreign assets worth over Rs 29,000 crore . The campaign, aimed at encouraging voluntary compliance, has seen a remarkable response, reinforcing India’s evolving tax transparency framework. Key Outcomes of the Campaign According to government sources, the campaign yielded the following results: 24,678 taxpayers reviewed and revised their Income Tax Returns (ITRs). 5,483 taxpayers filed belated returns for Assessment Year (AY) 2024-25 , declaring foreign assets worth Rs 29,208 crore and additional foreign income of Rs 1,089.88 crore . 6,734 taxpayers revised their residential status from Resident to Non-Resident . Overall, 62% of the targeted taxpayers voluntarily responded by declaring foreign assets and income. Growth in Voluntary Disclosures The number of taxpayers voluntarily disclosing foreign a...

Supreme Court Quashes FIR Against HDFC Bank: No Mens Rea in Locker Operation Case Introduction: The Case Overview In a landmark ruling delivered on October 22, 2024, the Supreme Court of India quashed the criminal proceedings against HDFC Bank and its officials in the case of HDFC Bank Ltd. v. The State of Bihar & Ors (2024 INSC 807). This judgment arose from a criminal appeal related to the quashing of an FIR lodged against HDFC Bank officials for allegedly violating an income tax restraining order. Relevant Facts of the Case The case began when income tax authorities conducted a search and seizure operation at the Gandhi Maidan branch of HDFC Bank, Patna, as part of an investigation involving several tax assessees, including the Khemka family. The authorities had issued a restraining order under Section 132(3) of the Income Tax Act, 1961, on October 5, 2021, which prevented the operation of bank accounts and lockers belonging to these assessees, particularly Smt. Sunita Khemka. ...