“Honest tax reporting is not just a duty — it’s your shield against future scrutiny.” — Income Tax Wisdom for the Digital Age Many salaried individuals have recently received SMS or emails from the Income Tax Department regarding suspicious donations claimed under Section 80GGC. Here’s a clear guide to understand, verify, and take action to avoid penalties. 🧾 What is Section 80GGC? Deduction for Contributions to Political Parties Available to any person (except local authorities and govt-funded bodies) Contribution must be made via non-cash modes (No deduction allowed for cash donations) Donations must be made to political parties registered under Section 29A of the Representation of the People Act, 1951 ❗ Why Are Notices Being Issued for 80GGC Claims? ⚠️ Reason 📌 Explanation Mismatch with AIS/TIS The deduction is not reflecting in your Annual Information Statement (AIS) Suspicious Donations Small UPI donations in bulk or donations to unknown political parties Fake or No Documentation No valid receipts or payment proofs from the party or trust 🛠️ Scenarios & What You Should Do ✅ Scenario 1: Claimed Deduction by Mistake (No Real Donation) 🔧 Solution: Don’t ignore the notice Revise your ITR immediately Pay additional tax + interest Return the refund received if it was inflated ❌ Scenario 2: Fake Donation for Tax Evasion Example: Donated ₹1,00,000 to a political party, got 80GGC deduction, and received the money back minus 10–20% commission. ⚠️ Consequences: This is tax evasion Department may impose 200% penalty Risk of Section 276C prosecution (jail + fine) 🛠️ Solution: File Revised ITR or ITR-U urgently Pay tax, interest, and return refund 🧾 Scenario 3: Genuine Donation 👍 You’re safe, but ensure you have: Donation Receipt (with party name, PAN, date, mode, amount) Proof of Payment (UPI, bank statement, cheque copy) Party Registration Proof (under Section 29A) 🔄 Understanding Consequences of Non-Compliance 🎯 Flowchart: Taxpayer's Mistake → Consequences Section Description Penalty/Outcome 148 Income Escaping Assessment New reassessment up to 10 years 270A Underreporting/Misreporting Income 50%–200% of tax penalty 276C Willful Tax Evasion Jail (3 months–7 years) + Fine 🔁 Ways to Revise Your ITR 🗓️ Deadline to File Revised ITR FY AY Last Date to File Revised ITR 2024–25 2025–26 31st December 2025 📘 For Older Years: File ITR-U (Updated Return) As per CBDT Notification No. 49/2025 dated 19th May 2025, you can now file Updated Returns (ITR-U) within 4 years from the end of the relevant Assessment Year (AY). FY AY Last Date to File ITR-U 2020-21 2021-22 31st March 2026 ✅ 2021–22 2022–23 31st March 2027 ✅ 2022–23 2023–24 31st March 2028 ✅ 2023–24 2024–25 31st March 2029 ✅ ITR-U can be filed only once for a particular financial year. Once an Updated Return (ITR-U) is filed for a specific year, a second ITR-U for the same year is not permitted under any circumstances. Additional Tax on ITR-U Time of Filing ITR-U Additional Tax Payable Within 12 months 25% of tax + interest 12–24 months 50% of tax + interest 24-36 Months 60% of tax + interest 36-48 Months 70% of tax + interest You Cannot File ITR-U in the Following Situations: To Claim or Increase TDS Refund: ITR-U cannot be filed to claim a refund or increase a previously claimed refund. To Report a Loss or Carry Forward Losses: You cannot use ITR-U to declare a loss (e.g., business loss, capital loss) or carry forward such losses, including unabsorbed depreciation. To Reduce Tax Liability or Income: ITR-U is not permitted if the intention is to reduce the total tax liability or decrease the income declared in the original ITR. If Assessment or Reassessment Has Started: If the Income Tax Department has already initiated any assessment, reassessment, or audit for the relevant year, ITR-U filing is not allowed. If There Has Been a Search or Survey: You cannot file ITR-U if a search (Section 132) or survey (Section 133A) has been conducted for that financial year. If ITR-U Has Already Been Filed Once for That Year: You can file ITR-U only once per assessment year. A second updated return is not allowed. Other Charges: Interest under Section 234A/B/C Late Fee under 234F (if original ITR not filed) No refunds or loss adjustments allowed. 🚫 Important Advisory ✅ Only claim 80GGC if: You actually donated You have receipt + payment proof Political party is registered under Section 29A ❌ Avoid: Agents/platforms offering cashbacks on political donations UPI-based split transactions to unknown parties 💡 Pro Tip: Before claiming any donation deduction under 80G or 80GGC: Check if the entity is valid and registered Ensure it reflects in AIS or have proof When in doubt, consult your CA or tax expert 🛑 If you've made a wrong claim, ACT FAST, REVISE YOUR RETURN, and AVOID PENALTY! Need help understanding your tax reports or filing return? 👉 Contact us for a personalized consultation and revising your returns.