A cavalier attitude towards filing of income tax returns (ITRs), complete with fake rent receipts from close relatives, extra claims against home loans, false donations and a slew of dodgy practices encouraged by some of the tax practitioners with a promise to slash tax outgo and prop up refund, may come back to haunt many, particularly salaried individuals.
Unlike in the past when it was easier to escape the glare of the tax office, many may run out of luck now as their returns are red-flagged by softwares used by the revenue department.
According to industry circles, notices are being served by the Income tax (I-T) department asking assessees to produce documentary proof for claiming exemption.
These notices are for exemptions under house rent allowance under section 10 (13A) for salaried individuals; allowance under section 10 (14) for hiring a helper to perform official duties; or deduction under section 24 (b) of the I-T Act for interest paid on home loans. The notices, pertaining to assessment years 2022-23, were issued as per section 133(6) of the law which empowers the tax assessing officer to call for information of certain details of transactions done during a particular year.
Source: economictimes.com
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