New Delhi, March 13 -- More than five million income tax returns were revised after the tax department flagged incorrect or bogus deduction claims last year, lowering refund claims by Rs.2,000 crore, Central Board of Direct Taxes (CBDT) chairperson Ravi Agrawal told a parliamentary committee.

Agrawal said the tax department had two choices when it detected the bogus claims-initiate a scrutiny or request taxpayers to update their returns based on information available with the tax authority-and chose the latter, according to a report tabled by the Parliamentary Standing Committee on Finance in the Lok Sabha on Thursday.

The report, quoting the CBDT chairman, said that in July 2025 the department carried out verifications into bogus deduc...