Income Tax Notice: The Income Tax Department has taken major action and said that now notices are being sent to thousands of people. Heavy fines are also being imposed on some people.
The action plan of New Delhi Income Tax Department has started. Under the old system of income tax, the government has given many measures to save income tax.
In this, renting a house is also a better option. For this, you have to submit House Rent Receipt to your employer in February or March. Apart from this, employed people also issue other documents.
In most of the cases, it has been seen that instead of taking receipt from the landlord, people themselves prepare fake House Rent Receipt and submit it to their company. But this cleverness of yours is now going to land you in big trouble.
Documents being demanded from taxpayers
Income Tax Department is taking the help of a special software to keep an eye on this type of fraud. With this software, it has become easy to detect fake documents submitted by taxpayers. According to recent reports, the Income Tax Department is sending notices to such taxpayers. Documents related to tax exemption claims are being asked from them.
These documents are being investigated
The Income Tax Department is taking strict action against fake documents. The fake documents that the Income Tax Department is keeping an eye on include house rent receipts, receipts for hiring helpers to perform official duties and receipts for interest paid on home loans.
These notices are related to the assessment year 2022-23 and these notices are being sent under Section 133(6) of the IT Act. Under this law, the tax assessing officer has the right to ask for information about certain details of transactions done during a particular period.
This discount is available for fares less than Rs 1 lakh
Salaried class people also get tax benefit on house rent under Section 10 (13A) of the IT Act from the Income Tax Department. Under this law, if the rent of your house is more than Rs 1 lakh per year, then you have to provide the PAN card of the landlord.
If the rent is less than Rs 1 lakh then there is no need to disclose PAN of the landlord. In such a situation, people prepare fake House Rent Receipt in the name of their friends and relatives by showing rent of less than Rs 1 lakh.
Income Department caught this fraud
At the same time, the Income Tax Department has also seen another type of fraud, in which people who have their own houses are also taking tax exemption by giving house rent slip.
Such people are being identified in the computer data check of the Income Tax Department, hence preparations are being made to send notices to them.
According to the Central Action Plan of CBDT, field officers are using technology to expand the tax base.
Why does fraud happen on HRA?
The biggest reason for fraud regarding house rent is that a lot of tax can be saved through it. Suppose you have shown the rent of your house for Rs 20 thousand per month i.e. Rs 2.40 lakh per year, then you will not be directly taxed on this amount.
Provided that you are getting house rent allowance of at least Rs 2.40 lakh from the company. However, if you have paid less rent then you do not get a claim on this entire amount.
What is the fine?
If an employee submits fake reimbursement bills to the institute to reduce tax liability, then it amounts to concealment of income. In this case the assessment officer (income tax officer) can start investigation. After this the taxpayer has to provide proof of the genuineness of the bills.
If bills are found fake then penalty will be imposed. If the income is underreported, it can be up to 50 percent under section 270A (1). If a person knowingly submits fake bills and gives wrong information about his income, he has to pay a fine of up to Rs 200.
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