Income Tax Dept Will Investigate Home Rent, Home Loan Frauds By Salaried Employees While Filing ITR


Rohit Kulkarni

Rohit Kulkarni

Jul 25, 2023


A recent report reveals that the income tax (I-T) department is closely scrutinizing the income tax returns (ITRs) of numerous salaried taxpayers. Certain individuals are resorting to deceitful tactics to evade taxes, including submitting ITRs with fake rent receipts from close relatives, making additional claims for home loans, fraudulent donations, and other unethical methods to lower their tax liability and increase their refunds.

Income Tax Dept Will Investigate Home Rent, Home Loan Frauds By Salaried Employees While Filing ITR

Advanced Software and Extended Reassessment Periods Uncover Taxpayer Discrepancies

To strengthen tax enforcement, the revenue department has implemented advanced software that red-flags suspicious returns, making it harder for taxpayers to go undetected. As a result, many individuals are now facing scrutiny from the tax authorities. In response, these taxpayers are receiving notices, requesting them to provide supporting documentation for their tax exemption claims, particularly concerning house rent allowance, hiring helpers for official duties, and deductions for interest on home loans.

The reassessment period has also been extended, allowing the tax authorities to conduct reassessment for up to a decade for those earning over Rs 50 lakh, and up to eight years for those earning below this threshold.

To facilitate their efforts in combating tax evasion, the I-T department is employing computerized record-keeping to cross-reference information from political parties or charitable trusts in tax returns with donation details provided by individuals.

Combatting Tax Evasion

Rahul Garg, a managing partner at a tax and regulatory consultancy firm, emphasized that tax authorities are now employing comprehensive profiling techniques by combining ITR data with external information to verify the authenticity of claims.

As part of their enhanced measures, the I-T department is now requesting taxpayers to disclose the names, addresses, and contact details of the chartered accountants, advocates, or tax professionals responsible for preparing and filing their ITRs.

Overall, this increased use of technology is aimed at more effectively tracing tax evasion, especially as some individuals in lower tax brackets may attempt to claim deductions without having actually made the corresponding payments.


Rohit Kulkarni
Rohit Kulkarni
  • 975 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Business
Dec. 8, 2022

Beat The Burden Of Medical Inflation With A Health Insurance

As disease rates rise and medical technology develops, treatment costs climb. It’s essential to understand that medical costs are not exclusively associated with hospitals. The cost of prescription drugs, diagnostic procedures, ambulance and operating room fees, consultations with doctors, and other costs are also constantly increasing. All of them could put a big strain on […]

Business
Dec. 8, 2022

3 Biggest Changes Of iOS 16.2 Update That Every iPhone User Should Know!

In its latest update Apple said that it is preparing for the iOS 16.2 update for iPhones across the world. Notably, like the previous release, there are a couple of changes coming for the iPhones.  iOS 16.2 Update Release Date So far, Apple has not announced a release date for iOS 16.2 update. Reportedly, the […]

Business
Dec. 8, 2022

300 Microsoft Employees Create Employee Union, First Time Ever: This Is How Microsoft Reacted

Around 300 workers at Microsoft Corp.’s ZeniMax Studios have commenced the process of forming a union which is said to be the first at the software giant in the US.  Here, Microsoft Corp.’s ZeniMax Studios known for popular video games including Skyrim and Fallout. Forming Union In Microsoft Corp Moreover, the quality assurance employees at […]

Business
Dec. 7, 2022

India Beats China In Air Travel Safety: Ranking Jumps From 102 To 48 In Global Aviation Safety

India’s air safety protocols and executions have improved drastically over the years, as validated by the findings of a specialized agency of the United Nations, the International Civil Aviation Organization or ICAO. The UN watchdog has upgraded India’s ranking in terms of aviation safety to the 48th position, jumping past the rankings of countries like […]

Recent Posts

Related Videos

   

Subscribe Now!

Get latest news and views related to startups, tech and business

who's online