🚨 Income Tax Alert: Did You Receive an SMS on Section 80GGC Political Donations? Act Before It’s Too Late! ⚠️

Key Highlights of the Income Tax Alert

1. Purpose of the Alert

The messages serve as a precautionary measure to remind taxpayers to verify their Section 80GGC claims. The department is intensifying scrutiny on political donation claims to ensure compliance and prevent fraudulent deductions.

2. Who is Affected?

• Taxpayers who have claimed deductions for donations to political parties.
• Applicable for Assessment Years: 2022-23, 2023-24, and 2024-25.

3. Deadline for Rectification

Taxpayers must review their claims and rectify any discrepancies by March 31, 2025. If necessary, they should file an updated return (ITR-U) to correct any errors.

4. Consequences of Non-Compliance

• Disallowance of the deduction
• Interest and penalties under the Income Tax Act
• Scrutiny and legal consequences if found to be fraudulent

What Taxpayers Should Do Now

✅ 1. Verify Documentation

Ensure that all receipts and records of political donations are legitimate and properly maintained.

✅ 2. Confirm Eligibility

The donation must have been made to a registered political party and should comply with the conditions of Section 80GGC.

✅ 3. Amend Returns If Necessary

If discrepancies are found, taxpayers should file an updated return (ITR-U) before March 31, 2025.

✅ 4. Seek Professional Advice

If you are unsure about your claims, consult a tax expert for proper guidance.

Conclusion

The Income Tax Department’s recent initiative underscores the importance of transparency and accuracy in claiming deductions. Taxpayers should proactively review their Section 80GGC claims, ensure compliance, and take corrective action if required.