India

IT Professional and Wife Accused of Rs 5.3 Crore Tax Evasion and Forgery

By Sidhartha

In a rare search operation, tax authorities in New Delhi seized an IT professional and his wife, alleging that they evaded tax worth Rs 5.3 crore over five years through fabricated donation and loan claims. The couple is also charged with forging documents and receipts. Investigators found that the couple claimed deductions for fake political donations, interest on home and education loans, and failed to report rental income. They reportedly purchased half a dozen properties using some of these funds.

The investigation began when the wife’s tax return claimed a deduction of more than Rs 40 lakh for a donation to a political party. Her Form 16 showed deductions of about Rs 1.2 lakh, yet the return claimed an additional deduction. Verification with the party revealed that the taxpayer had actually donated only Rs 50, for which a receipt had been issued. Officials discovered that the receipt had been digitally altered and that several fabricated receipts were generated to support a claim of a donation exceeding Rs 40 lakh.

When summoned, the husband, who filed the returns, presented the “modified” receipts and bank statements to support the claim. Officials could not reconcile the transactions with the bank records. Loan payments, credit card payments and bank transfers, including transfers to their own account, had been forged to appear as political donations.

The couple also claimed nearly Rs 3 crore in education loan interest for studies at Yale University. An interest certificate was submitted, but officials found that no family member had ever studied at Yale and that the certificate had been prepared using ChatGPT.

They made a bogus housing loan claim, with both spouses describing themselves as the sole owner of the same property, although they have now admitted that it was jointly owned. The property was always rented out and was not self‑occupied. In their returns, one spouse claimed nil rental income and an interest payment of Rs 2 lakh, while the other claimed up to Rs 5 lakh as interest income. Since tax returns now require disclosure of loan account number and bank, the name of the bank was changed in one case and the loan amount increased to Rs 6 crore, with interest claimed at Rs 8 lakh. The probe revealed that the loan had been repaid in 2015, while the claims under scrutiny related to the period beginning FY 2021‑22. The property was earning rent of Rs 10‑16 lakh during this period.

When the case was first picked up, the husband shifted the deduction claim for political donations under Section 80GGC to donations to charities under Section 80G, without surrendering the claim. The couple now face penalties and other legal action.