Submitting fake rent receipts? Beware! Here's how income tax department can catch you
ITR Tips: January is very important for salaried people in India. In this month, companies ask for investment proof from their employees. They may be in the form of LICs, ELSS, other tax-saving schemes, tuition fee receipts or rent receipts.
On the basis of these documents, your company calculate your tax and deduct it from your salary for the next three months.
The final deduction is done by the Income Tax Department (I-T) Department, which may also give you a tax refund.
While giving investment proof, some people submit fake rent agreement and rent receipts to save more tax. If you are also thinking of doing something like this then just wait. The I-T department can catch you.
For the last many years, many people have been saving taxes in this way.
The Income Tax Department is also noticing it and has now started cracking down on such illegal practices.
The Income Tax Department has started sending notices (IT Notices) to those who claim tax deduction by submitting fake rent receipts since last year.
Now the question arises that how is this happening? How the I-T department knows that a particular rent receipt is fake or genuine.