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I-T department busts fraudulent tax refund racket by IBM, Infosys, Vodafone employees

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I-T department busts fraudulent tax refund racket

The Income Tax department on Wednesday conducted searches at the premises of an unidentified CA and seized bogus claim documents of his clients.

In a major step against economic frauds, the Income Tax Department on Thursday busted a racket of extracting fraudulent tax refunds of employees of leading companies like IBM, Vodafone and Infosys with alleged collaboration of a chartered accountant (CA) in Bengaluru.

According to the I-T department, its investigation wing, on Wednesday, conducted searches at the premises of an unidentified CA and seized bogus claim documents of his clients along with WhatsApp messages.

In a statement released on Thursday, the central tax monitoring department said that the accused CA was “found to be instrumental in filing false income tax returns and making fraudulent refund claims by citing inflated or false claims of loss from house property”.

Allegedly, till date the CA has filed “nearly 1000 returns with loss from house property, aggregating to loss claim of Rs 18 crore” and the I-T department is closing monitoring the tax refunds of employees of over 50 Bengaluru-based prominent or medium-scale companies.

“It is noted that employees from some of the reputed companies such as IBM, Vodafone, Saplabs, Biocon, Infosys, ICICI Bank, CISCO, Thomson Reuters India Limited among others have also resorted to such fraudulent claim of refunds by filing revised returns of their individual income,” said the department.

Further stating that the officials have questioned many employees suspected to be involved with the racket, a senior official of the tax department said, “This is a case that is building up. Such a large-scale action in cases of employees seeking false refunds has been undertaken by the tax department for the first time.”

Officials also stated that many employees, who were quizzed by the department, claimed to have no “real loss” under the ‘income from house property’ category. Moreover, most employees have shifted the blame to the accused CA, stating that he said “he can get refunds for them by making some claims”.

“They also deposed that, out of the refund received, the auditor (CA) had charged 10% as incidental charges. Some WhatsApp messages with auditor were also shown by them, as supporting evidence,” the department said.

However, the CA claimed that he had filed the bogus claims at the “insistence of his clients”.

“Further enquiries like examination of his (CA’s) other clients and cross examination of them with the CA are being conducted. Necessary action as per law will be taken against the CA as well as the persons who have claimed wrong refunds under the provisions of Income Tax Act,” read a statement from the department.

India News

PM Modi changes social media profile pictures to mark Operation Sindoor anniversary

PM Modi changed his social media profile pictures to commemorate one year of Operation Sindoor, with several NDA leaders following the move.

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PM Modi speech

Prime Minister Narendra Modi on Thursday updated the display pictures of his social media accounts to mark the first anniversary of Operation Sindoor. The new image was seen across his profiles on X, Facebook, Instagram and WhatsApp channels.

The updated profile picture carries the text “Operation Sindoor” on a black background along with elements of the Indian tricolour. One of the letters in the word “Sindoor” has been stylised using vermilion, commonly associated with married Hindu women.

Operation Sindoor was launched a year ago by Indian defence forces and the Border Security Force along the western border. The anniversary was also marked by several Union ministers and NDA leaders, who changed their social media profile pictures in a similar manner.

External Affairs Minister S. Jaishankar and other senior leaders were among those who adopted the commemorative display image on social media platforms, according to reports.

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Congress, BJP attack Bhagwant Mann over remarks on Punjab blasts

Congress and BJP have jointly criticised Punjab CM Bhagwant Mann after he linked recent blasts near defence sites to political motives, triggering a controversy.

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Bhagwant Mann

A political row has erupted in Punjab after Chief Minister Bhagwant Mann linked recent blast incidents to political motives, drawing sharp criticism from both the Congress and the Bharatiya Janata Party (BJP).

The controversy follows two low-intensity explosions reported within a short span of time — one near the Border Security Force (BSF) headquarters in Jalandhar and another close to an army cantonment area in Amritsar. The incidents raised concerns over security, particularly given the sensitive nature of the locations.

In response, Mann suggested that the blasts could be part of a larger political strategy. His remarks triggered a strong backlash, with opposition parties accusing him of politicising a serious security issue.

Leaders from the Congress criticised the Chief Minister’s statement, calling it inappropriate and alleging that such comments undermine the gravity of the situation. They stressed that matters related to national security should be handled with caution and responsibility.

The BJP also joined the criticism, questioning the basis of Mann’s claims and urging the state government to focus on investigation and law enforcement instead of making political allegations.

The developments have led to an unusual moment where both Congress and BJP appear aligned in their criticism of the Aam Aadmi Party-led government in the state.

Meanwhile, the blasts themselves have intensified concerns over safety in border regions, with authorities continuing their investigation into the incidents. No casualties were reported, but the proximity to defence establishments has made the issue particularly sensitive.

The episode has further escalated political tensions in the state, with security and accountability emerging as key points of debate.

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Himanta Biswa Sarma resigns as Assam chief minister, oath ceremony likely after May 11

Himanta Biswa Sarma resigns as Assam Chief Minister after BJP-led NDA’s victory. He will continue as caretaker CM until the new government is sworn in after May 11.

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Himanta sharma

Assam Chief Minister Himanta Biswa Sarma resigned from his post on Wednesday, paving the way for the formation of a new government after the BJP-led NDA secured a decisive victory in the 2026 Assembly elections.

Sarma submitted his resignation to Governor Lakshman Prasad Acharya at Lok Bhawan in Guwahati. The Governor accepted the resignation and asked him to continue as the caretaker Chief Minister until the new government takes charge.

The resignation comes after the NDA’s strong electoral performance, where the alliance won a clear majority in the 126-member Assembly, ensuring its return to power for another term.

Oath ceremony expected after May 11

Speaking to reporters after submitting his resignation, Sarma said the swearing-in ceremony for the new government is likely to be held after May 11.

He indicated that Prime Minister Narendra Modi has been invited to attend the ceremony but is unavailable until May 11, which has influenced the tentative schedule.

Decision on next chief minister soon

Sources suggest that central observers, including senior BJP leaders, are expected to arrive shortly to oversee the selection of the legislature party leader. The newly elected MLAs will then decide on the next Chief Minister.

Despite the formal resignation, party sources indicate that Sarma is likely to continue in the role for another term, given the BJP’s strong mandate in the state.

The move marks the beginning of the government formation process in Assam following the election results declared earlier this week.

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