Punishment For Fake Rent Agreement

Over time, the fraudulent taxation of a tax deduction by depositing false rental income has become a trend. If you do so when e-filing the 2019-20 income tax return, remember that this unethical method of tax evasion is a misdemeanor. In addition, in light of recent legal developments, technological advances and data mining, the Revenue Office proactively monitors such abuses and provides guidance to suspected fraudsters. The notator has the authority to require proof of the claimed deduction and, if the necessary documents are not provided, the helmsman will not accept the alleged exemption. In addition, they must pay additional taxes as well as interest and penalties. Under the new system, certificates (such as HRA, LTA, etc.) must be listed separately in Form 16 to maintain the transparency of the system. In this context, the presentation of supporting documents is extremely important in detecting the money trail of the rent paid. Hello, can you pay rent to your spouse to apply for HRA benefits? According to the Court of Appeal for Income Tax (ITAT), such fictitious claims may be rejected under the income tax doctrine. In this case, the noted must provide all the evidence that arises during the normal rental period of premises, such as vacation and licensing agreement, the letter to the company in which he talks about his rental contract, rents through die bank, cash payments with known sources , payments of electricity bills by cheque, some correspondences that come during this rental period to prove that the rental of premises was authentic and took place during this period. Not just rental income. False medical bills, false travel bills, etc., are usually submitted without hesitation.

As the sum of people is enormous and nothing is done, it continues… The presentation of false rental income has so far been one of the most common tricks to reduce one`s own tax revenue. However, starting this year of assessment, the Revenue Board intends to address such cases of fraud – the new ITR forms and the amended Form 16 are supposed to hide evidence of fraudulent tax returns through computerized processing. If you agree on the data, be prepared for an income tax notice. 3. As long as the review is not completed, the IT department does not see your income or lease agreements. The rental income you submit to the employer stays with your employer, it never goes to the IT department – unless you ask the company in case of an exam. 1. If there is no control, taxpayers are not very concerned about it. The possibility of control for low wages is very low.

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