The Income Tax Department has intensified its focus on fake or bogus donation deduction claims made in Income Tax Returns (ITRs). Recently, the Central Board of Direct Taxes (CBDT) highlighted that many ITRs were filed with incorrect deductions and exemptions, especially relating to donations shown to political parties (including RUPPs—Registered Unrecognised Political Parties) and certain charitable trusts/institutions. This is now clearly under the tax scanner, and taxpayers should treat it as a serious compliance warning.

Why is CBDT checking donation claims so strictly? Why CBDT is checking 80G & 80GGC claims?

Tax law provides legitimate deduction benefits for genuine donations. For example:

• Section 80G allows deduction for donations to eligible charitable institutions (subject to conditions), and
• Section 80GGC allows deduction for contributions made to eligible political parties/electoral trusts (subject to conditions).

However, CBDT found that some intermediaries were helping taxpayers file returns with bogus donation entries to reduce tax liability and, in some cases, to claim wrong refunds. The investigation also indicated that some intermediaries operated through networks of agents across India and filed such claims on a commission basis.

In many cases, donation receipts were allegedly issued by entities that were suspicious—for example, certain RUPPs that were reportedly non-filers, non-operational at their registered addresses, and not engaged in genuine political activity. Such entities were allegedly used as conduits for issuing donation receipts and routing funds.

What is CBDT’s “NUDGE” campaign?

CBDT has strengthened a data-driven approach to detect suspicious claims early. Instead of starting action against everyone at once, CBDT has launched a taxpayer-friendly NUDGE campaign (a soft compliance push). Under this, the department is sending SMS and email advisories from 12 December 2025 to taxpayers whose donation claims show high-risk patterns.

The purpose is simple: review your ITR and correct it voluntarily if any wrong claim was made. Many taxpayers have already revised their returns or filed updated returns for earlier years after similar nudges.

What should you do if you claimed 80G or 80GGC deduction?

If you have claimed donation deductions, follow this practical checklist:

1. Verify genuineness of donation
   Ensure the donation was real and not “managed” by someone promising tax savings or “guaranteed refunds”.
2. Keep proper proof
   Maintain payment trail (bank/online proof), receipt, and correct details of the donee (name, PAN, etc.).
3. For 80G claims, check Form 10BE
   For many 80G deductions, donors should have a Form 10BE certificate issued by the donee after the donee files Form 10BD. If your 80G claim does not match the certificate/details, it can trigger questions.
4. Correct mistakes quickly
   If you find any incorrect claim, consider correcting via Revised Return (if time permits) or Updated Return (ITR-U) under Section 139(8A), wherever applicable.

Why you should not ignore this – How to correct wrong claims (Revised Return / ITR-U)

A wrong or bogus deduction can lead to withdrawal of deduction, tax demand, interest, and penalty. In serious cases where fraud is established, stricter action may follow. Therefore, it is far safer to self-check and voluntarily correct rather than wait for a tax notice.

Final message

The key message from CBDT is not against genuine donors—it is against fake donation receipts and misuse of deduction provisions. If your donation is genuine and properly documented, you should be comfortable. But if you are unsure, now is the best time to review and fix the return.

Tip: Always keep your mobile number and email updated in the Income Tax e-filing profile so you do not miss any important communication from the department.

FAQ on – Bogus Donation to Political Parties & Trusts Now Under CBDT Scrutiny

1. What is CBDT NUDGE campaign for donation deductions?
   A data-driven advisory (SMS/email) asking taxpayers to review suspicious 80G/80GGC donation claims and correct returns if needed.
2. Will every 80G or 80GGC claim be questioned?
   No. Scrutiny is mainly for high-risk patterns, mismatches, missing proof, or suspicious donee entities.
3. What documents support an 80G donation claim?
   Receipt, payment proof (bank/online), donee details, and ideally Form 10BE where applicable.
4. How can I fix a wrong donation deduction?
   File a Revised Return (if allowed) or Updated Return (ITR-U u/s 139(8A)) as applicable.
5. What is the risk of fake donation receipts?
   Disallowance, tax demand, interest, penalty, and in serious cases, prosecution exposure.

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