The Economic Times

Rs 7 lakh income, Rs 2 lakh donation to a political party: How fake contributions led to Section 80GGC tax deduction claim rejection

A Mumbai man's Rs 2 lakh donation to a political party for tax deduction backfired. The Income Tax Appellate Tribunal (ITAT) Mumbai disallowed the claim, finding the party engaged in a cash-back scheme. The party, with no verifiable office, allegedly returned donations after deducting a commission, facilitating fraudulent tax claims.