New Delhi: The Income Tx department carried out simultaneous raids at several registered unrecognised political parties (RUPP) across the country for allegedly duping the national exchequer of crores of tax money.

IT department raids were carried out at over 100 premises across India

The said coordinated action was launched by the department against RUPPs, their promoters and linked entities to probe the source of their income and expenditure, sources said.

IT department raids were carried out at over 100 premises across India – in Gujarat, Delhi, Uttar Pradesh, Maharashtra, Madhya Pradesh, Chhattisgarh, and Haryana, among other states.

The action was initiated after the Election Commission of India flagged small political parties accepting donations and then providing entries for tax deductions to those donating. In this way, the money coming in as donations goes back in cash after tax deductions to those making the donations.

A senior IT official said that political parties accept money from patrons through entry operators who would return a major part of the money after deducting a small percentage and tax. This way, the national exchequer is cheated and duped of crores of tax money.

Several big businesses and high-value individuals managed to avail tax deductions this way and are now under the agency’s radar, added the official.

The official further said that once the search and seizure is completed, a report will be prepared and subsequently notices will be issued to the entities and people concerned, seeking an explanation and thereafter initiate legal action.