ITR Refunds: Difficulties are going to increase for those who get tax refund by showing fake donations. The Income Tax Department has taken a tough stance and started strict investigation against such taxpayers who try to get refunds by making false claims of making alleged donations to political parties or various organizations while filing Income Tax Returns (ITR). The department says that now such cases are being closely monitored and strict action will be taken against those found guilty.

According to Income Tax officials, in recent times a large number of such cases have come to light in which taxpayers have claimed to donate to any political party or charitable organization, but during investigation these claims were found to be suspicious or completely fake. In many cases, it has also come to light that instead of giving the donation directly to the concerned organization, it was shown through an intermediary or agent, so that more refund could be claimed by taking tax exemption.

Now the Intax Department will wield power!

The Income Tax Department has issued this warning at a time when there is a delay in processing the refunds of many taxpayers. Officials have clarified that a major reason for the delay in refund is that now the claims made in the returns are being thoroughly investigated. Especially those cases are being investigated where the claims of tax exemption and refund are unusually high.

During the investigation, the department got information about a whole network of agents and middlemen who provide fake documents to taxpayers in exchange for commission. These agents assure the taxpayers that by filing returns through them, the tax will be very less and the refund will be more. For this, fake donation receipts, documents of donations in the name of unrecognized political parties and in some cases, receipts of fake charitable trusts were used.

Strict strictness of Income Tax Department

The Income Tax Department has made it clear that not only will the refund be stopped against those making such fake claims, but penalty, interest and legal action can also be taken in serious cases. The department says that under the Income Tax Act, availing tax exemption by giving false information is considered a serious crime.

The department has appealed to honest taxpayers to claim tax exemption only on genuine and valid donations and not to fall prey to any agent or middleman. Besides, taxpayers have also been advised to check all the documents properly before filing the return, so that any kind of problem can be avoided in future.

Overall, this step of the Income Tax Department is being considered as a big and strict message towards increasing transparency in the tax system and preventing loss of revenue through fake refunds.

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Income tax return: The time limit for filing income tax was extended by the government for one day to assessment from 15 September to 16 September 2025 for the year 2025-26. The reason behind this was to give relief to technical flaws and taxpayers. But if you have not filed an ITR even then, then there is no need to worry, because you still have a chance.

Now what option has taxpayers?

If the taxpayers have not filed an ITR within the time limit, they can file it by 31 December 2025 with late fees. The Income Tax Department gives extra time under the rules, but penalty is imposed for it.

According to the rule, ITR can be filed by three months before the end of the assessment year or till its completion (which first) ITR can be filed. This year its last date is 31 December 2025.

Rules to file late

Under Section 234F of the Income Tax Act, if someone’s annual income is more than Rs 5 lakh, then he will have to pay a penalty up to a maximum of Rs 5,000 on late returns i.e. billed returns. At the same time, whose income is up to Rs 5 lakh, they will have to pay a maximum of Rs 1,000 late fee. That is, if the ITR has not been filed within a fixed time limit, the late fee can range from Rs 1,000 to Rs 5,000 according to the level of income.

Another important thing

Tax refunds can also be delayed by filing ITR from late. Many times it also comes to the Radar (scrutiny) of the Income Tax Department, which increases the risk of additional investigation. Another thing is to note that if your tax is made and you have not filed income tax, then you will have to pay 1 percent interest under Section 234A of the Income Tax Act.

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