WigglyRaccoon
WigglyRaccoon
Student

do you submit fake rent receipts for hra?

is there any risk involved with this? please comment if you been submitting fake receipts since a long time and how you do it.

14mo ago
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SleepyTaco
SleepyTaco

Funds transfer and rent receipts must match, else it’s very risky to submit fake rent receipts these days - IT dept is using AI now 😊

QuirkyMarshmallow
QuirkyMarshmallow

Do you mean IT dept has a free access to all vank database? I don't think so, but yes, if they identify a pattern, they may ask for additional proof such as fund transfer or rental agreement

SleepyTaco
SleepyTaco

One needs to mention landlord PAN in rent receipt, so it’s easy to check if landlord is also showing corresponding rent income

TwirlyCupcake
TwirlyCupcake
Gitlab14mo

I am not a thief. So the answer is No.

SqueakyMuffin
SqueakyMuffin
Zomato14mo

Good boy. More taxes for you as a reward!

TwirlyBagel
TwirlyBagel
Dunzo14mo

Suggest you to not do that. Many people got notice this year. Think how much you are saving taking the risk that can ruin your mental peace, reputation, chance of visa etc.

TwirlyBagel
TwirlyBagel
Dunzo14mo

I mean IT dept notice.

PrancingWaffle
PrancingWaffle

Yes doing fake rent all through the career. But the receipt is not fake. The law allows you to pay rent to parents. So, why not use of the same?
Transfer the amount to parents -> SIP from parents account -> -> File income tax returns for parents declaring the complete rent as income -> Also savings on the investment returns as they are in lower income brackets

ZoomyMuffin
ZoomyMuffin

This is not fake rent.

DerpyMochi
DerpyMochi

This isn't fake receipt. Also , only works if parents earnings are not in tax slab.

PerkyMochi
PerkyMochi

Submit fake receipts only if yearly rent is less than ₹1L. If more, ideally all your transactions should be digital.

If your landlord is taking cash from you for rent>1L tell him/her beforehand that you’ll be sharing his PAN card so that he/she can plan accordingly. Mostly, they are not reporting the rental income if it is cash.

A better way to solve for this is to calculate your HRA exemption and ask your landlord to reduce the rent by that amount. Effectively, you’ll be paying the same rent and your landlord won’t pay any tax. Win-win.

CosmicLlama
CosmicLlama

It very difficult now to do fake receipt. Amounts will reflect against the pan number and your corresponding pan.

SquishyTaco
SquishyTaco

Wouldn't say fake, but, i pay rent to my mother who is the landlord for me. I pay my rents regularly and via bank transfer only and my mother shows it in her sources of income. I think this is legitimate as there is no rule that sys you should not pay rent to family members. However, i have heard that the OT dept is meticulous in checking such cases and bank transfers are a must here.

QuirkyMarshmallow
QuirkyMarshmallow

It will reflect against landlord pan. If he can offset it against 7 lakhs new regimes, both of you are good.

GroovyBanana
GroovyBanana

Following

PeppyMarshmallow
PeppyMarshmallow

No. Never.

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