New Delhi, Dec. 14 -- The Central Board of Direct Taxes (CBDT) has stepped up its data-driven push to curb bogus tax deduction claims, warning taxpayers to correct wrong filings after uncovering widespread misuse of donation-based exemptions, according to a Ministry of Finance release issued on Saturday.

The tax authority recently acted against several intermediaries who filed income tax returns with false claims of deductions and exemptions.

Officials found that some intermediaries built networks of agents across the country who filed returns with incorrect claims in exchange for commissions. The probe showed that many individuals reduced their tax liability by making bogus claims for donations to Registered Unrecognised Political Part...