Claimed Wrong Tax Deduction? Income Tax Dept's 'Tax Assist' Campaign Might Help You Fix It In Time

For those currently filing their income tax return (ITR), or those who’ve already done so, a key consideration remains - are they claiming the right tax deductions or exemptions? The Income Tax Department recently rolled out a campaign called ‘Tax Assist’ with a fairly clear message: if you have made an error in your return, now is the time to set it right.

This is part of a broader push by the department to improve tax compliance, especially during the ITR filing season. While taxpayers continue to scramble to meet the new September 15 deadline, the department is actively scanning returns using AI and data analytics to catch misreported or suspicious claims. 

Some of these could be genuine errors, others are not. Either way, Tax Assist is meant to guide taxpayers through the mess, especially those who have received a notice or suspect something might be wrong in their filing. The helpdesk is available on the e-filing portal and walks you through next steps, such as how to:

• Revise your return

• File an updated one, and

• Deal with refund-related issues

The 80GGC Problem

For instance, the department shared an example in a post on social media platform X where one of the first issues flagged under this campaign is related to Section 80GGC. This is a deduction meant only for individual taxpayers who donate to registered political parties. It does not apply to companies or businesses.

This section seems to have been misused more often than expected, either by mistake or, in some cases, to artificially boost refund claims. The department, in a series of posts on X, gave examples of what not to do: fake donations, claiming ineligible contributions, or using the deduction for corporate donations.

If you have already filed your return and realise that you have wrongly claimed 80GGC, the advice is straightforward:

• Revise the return (if you are still within the deadline), or

• File an updated return (ITR-U) if you have missed the revision window

• Pay the additional tax and any interest

• And yes, return any excess refund you received as a result of the error

The department stated clearly:

“Ignoring the communication may lead to scrutiny or penalty. Correct it before it costs you.”

AI Is Doing the First Round of Checks

What has changed behind the scenes is how returns are being reviewed now. With improved and digitised methods, your claimed deductions are now being matched against financial data sourced from banks, brokers, mutual fund houses, employers, and so on. This comes via your Annual Information Statement (AIS) and the Statement of Financial Transactions (SFT).

If there is a mismatch, say you claimed a donation that is not reflected in your financial records, it will get flagged. This is when notices are triggered, asking you to explain or justify the claim. You can respond yourself, or with the help of a tax expert, either way, brushing it aside is no longer an option.

For Those Who Made a Genuine Claim

If you did donate to a political party and claimed 80GGC correctly, it is still necessary that you keep receipts and proof of payment ready. The department may still ask for them during verification, especially if your return is under scrutiny.

For those who need help, Tax Assist is there on the Income Tax portal especially during the ITR filing season where even small errors can lead to disproportionate consequences, having that sort of support might actually count for something.