is there any risk involved with this? please comment if you been submitting fake receipts since a long time and how you do it.
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 😊
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
One needs to mention landlord PAN in rent receipt, so it’s easy to check if landlord is also showing corresponding rent income
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
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.
