Jharkhand IT blows lid off Rs 2000 crore fake donation racket
SHAKEEL AKHTER Advertisement Ranchi, Sept 11: Young professionals from Madhubani, Purnia, Supaul, East Champaran, and West Champaran in Bihar are among…
SHAKEEL AKHTER
Ranchi, Sept 11: Young professionals from Madhubani, Purnia, Supaul, East Champaran, and West Champaran in Bihar are among those found guilty of tax evasion. Youth from Ranchi, Jamshedpur, and Dhanbad in Jharkhand are also involved in this large-scale scam.
The Aam Janmat Party, a political party based in Gujarat, has been caught playing a key role. The party reportedly kept a 5% commission from the donated money and returned the rest to the donors.
The investigation wing of the Jharkhand Income Tax Department uncovered tax evasion worth Rs 2000 crore through fake political donations. More than 500 young professionals from Jharkhand and Bihar, many of whom earn annual salaries in crores, participated in this scheme.
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According to reports, political parties deducted 5% commission and then used hawala channels to return the remaining money to these professionals. This is the second major case exposed by the Jharkhand Income Tax Department. Earlier, the Shah couple from Gujarat was caught trying to reclaim black money seized by investigation agencies using fake documents.
Regions Involved
Most of the professionals involved come from Madhubani, Purnia, Supaul, East Champaran, and West Champaran in Bihar. A significant number also belong to Ranchi, Jamshedpur, and Dhanbad in Jharkhand.
Investigation and Admission
So far, the Income Tax Department has summoned over 500 young professionals and questioned them. During interrogation, they admitted to evading taxes by donating to political parties. Many have promised to pay back the due tax along with interest and penalties.
Following these confessions, several professionals have already started depositing tax, interest, and penalties into the government treasury.
Raids on Aam Janmat Party
The Income Tax Department also raided the Ahmedabad offices of Aam Janmat Party leaders. Over 100 officials were involved in the operation. The raid covered the party’s president, vice-president, treasurer, and other key members.
During questioning, the party’s president and officials admitted their role in this tax evasion scheme. They confirmed that after deducting a 5% commission, they returned the donated money through hawala. The hawala traders involved also confessed to their participation.
The Law
Under Sections 80GGB and 80GGC of the Income Tax Act, 1961, donations made to political parties are exempt from tax. For example, if a person’s annual income is Rs 1 crore and he donates Rs 30 lakh to a political party, he needs to pay tax only on Rs 70 lakh. Many high-earning professionals misused this provision to evade taxes by making fake donations.
