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.

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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.

Also read: Delhi records slow voter turnout of 8.10% as of 9 am in assembly polls: ECI

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