India, July 14 -- The Income-Tax Department has found organised rackets operated by some returns preparers and intermediaries across the country, filing income-tax returns (ITRs) on behalf of their clients -- including employees of multinational companies, public sector firms, government bodies, academic institutions, and entrepreneurs -- to fraudulently claim exemptions and refunds, the Finance Ministry said.

The department is now poised to take stern action against continued fraudulent claims, including penalties and prosecution wherever applicable, it said in a statement on Monday. "The ongoing verification exercise across 150 premises is expected to yield crucial evidence, including digital records, that will aid in dismantling the n...