Income Tax News: With the July 31, 2023, deadline for filing Income Tax Returns (ITRs) drawing near, the Income Tax Department is stepping up its efforts to target taxpayers who might be utilising fraudulent rent receipts as a means of avoiding paying taxes.
Cracking Down on Deceptive Filings
Payrollers who file erroneous or fraudulent income tax returns (ITRs) are facing harsh penalties from the income tax department. The tax department is actively identifying such returns, which range from submitting fraudulent rent receipts to making fake donations. According to Section 10(13A), salaried people are exempt from paying rent taxes up to ₹1 lakh as long as they do not reveal their landlords’ PAN.
Income Tax Department’s Thorough Examination
The Income Tax Department is taking a thorough approach to examine the veracity of these claims.
- To stay out of trouble, let’s make sure that taxes are paid honestly.
- Make use of a current lease.
- Prefer to pay your rent by cheque or online.
- When making a payment larger than ₹1 lakh, mention the landlord’s PAN.
- Maintain a record of your utility bill payments.
- If one isn’t already available, ask the landlord for a PAN declaration.
Understanding Income Tax Notices
An income tax notice is issued by the Income Tax Department for a variety of reasons in accordance with various provisions. An income tax notice is typically sent to a taxpayer for a variety of reasons, such as missing or filing their income tax return after the deadline, filing it incorrectly, claiming an incorrect tax refund, and many more. Under sections 143(1), 142(1), 139(1), 143(2), u/s 156, Section 245, and Section 148, the tax department issues the income tax notice.
Keep watching our YouTube Channel ‘DNP INDIA’. Also, please subscribe and follow us on FACEBOOK, INSTAGRAM, and TWITTER
