Those who claim tax deduction by putting up fake rent receipts, a notice (IT notice) is being sent to them by the Income Tax Department. Now the question arises that how is this happening? After all, how is the Income Tax Department catching ITRs with fake rent receipts and sending notices?
Many people use fake rent receipts to save income tax. For the last many years, many people have been saving tax in this way. The Income Tax Department also sees all this and has now started cracking down on such people. Those who claim tax deduction by putting up fake rent receipts, a notice (IT notice) is being sent to them by the Income Tax Department. Now the question arises that how is this happening? After all, how is the Income Tax Department catching ITRs with fake rent receipts and sending notices? Let us tell you that the last date for filing income tax return is July 31 (ITR Filing Last Date), after which penalty will be imposed for filing income tax return.
The Income Tax Department has made this arrangement
In the era of Artificial Intelligence, the Income Tax Department is also catching fake rent receipts using AI. For this, AIS Form and Form-26AS are matched with Form-16. Let us tell you that all the transactions related to PAN card are recorded in these forms. When a taxpayer claims house rent allowance through rent receipt, the Income Tax Department matches his claim with these forms and the difference is immediately visible.
Understand the rules of House Rent Allowance
There is a rule related to house rent allowance that he can claim deduction of HRA only when he is getting HRA from the company. On the other hand, if the employee pays more than Rs 1 lakh as rent, then he will also have to give the PAN number of his landlord. With this, the Income Tax Department matches the amount claimed under your HRA with the amount sent to your landlord’s PAN number. Explain that all transactions related to PAN are written in AIS form. If a difference is found between the two, then a notice is sent to you by the Income Tax Department.
If your company gives HRA and you are claiming less than Rs 1 lakh annual rent, then you will not have to give PAN of your landlord. That is, in this situation, you can claim HRA up to Rs 1 lakh, which will not be checked by the Income Tax Department whether it is correct or fake.
Why does fraud happen on HRA?
The biggest reason for fraud regarding HRA is that it can save a lot of tax. Suppose you have shown the rent of your house at Rs 20,000 per month i.e. Rs 2.40 lakh per annum, then you will not be taxed directly on this amount. Provided that you are getting HRA of at least Rs 2.40 lakh from the company. However, if you have paid less rent then you do not get the claim on this entire amount. In such a situation, many people think that tax can be saved by making fake rent receipts, but now the Income Tax Department is catching these frauds and sending notices.
