Techies in tax trouble: Rs 110 crore refund scam uncovered in Hyderabad

An investigation by the I-T department exposed a Rs 110 crore scam where employees from 36 IT companies in Hyderabad falsely claimed tax refunds for donations they never made.

Several IT professionals in Hyderabad have come under the income tax (I-T) department's radar after being flagged as 'top donors' to registered unrecognized political parties (RUPPs), according to a report in Times of India (TOI).
However, their sudden interest in politics turned out to be a fraudulent scheme exploiting Section 80GGC of the Income Tax Act, which grants tax deductions on political donations.

An investigation by the I-T department exposed a Rs 110 crore scam where employees from 36 IT companies falsely claimed tax refunds for donations they never made, the TOI report said.

One startling case involved an IT professional earning ₹46 lakh annually who declared a Rs 45 lakh political donation. In some instances, donations were made via cheque or bank transfer, only for the amount to be returned in cash after deducting a commission.