So I am on the new tax regime for this tax assessment year. I have compared both old and new tax regime and with all deductions and exemptions, I have tax liability ~3.4 lacs in the new tax regime(which is better for me). Now a friend's CA said he could save me close to 1 lac in tax by fake rent receipt in the name of some relatives. This got me thinking if I should go ahead with a fake rent receipt and get returns from income tax? Previously I used to pay my own tax filing using online tools like Cleartax.
If you claim HrA in excess of 1 Lac for the year youâll have to furnish your landlords PAN in this case your relative. When the relative fills ITR same income will be shown in his statement. So choose wisely. If itâs less than 1 lac then you are safe.
Also PS: if any query comes it will be on you and not on your CA so liability to fill correct ITR is with you.
Concur with @Maverick
Its never ok to forge anything.
You cant claim hra unless your employer mentions it in your form 16. Basically employer inform it dept about claim. So you will certainly receive a show cause notice in 2-3 years.
Record this communication with your CA either using WhatsApp or phone recording (this will be utilized for extreme legal scenarios).
Now, as others have noted, if you pay 1 lakh and more per annum as rent, you would require PAN card data of the receiver.
Make sure to set up a rental agreement ahead of time. All of this is determined by the amount you claim for HRA, which may be calculated in three ways:
a) 40% of basic
b) actual HRA received
c) 10% basic - actual rent paid
So, the minimal amount will be evaluated for exemption; if the value is less, there is no need for all these efforts.
No one is watching until you're doing it above certain amount. Jist Saving few thousand bucks not one cares.
Seems like since last year the focus of government has shifted from actually making beneficial policies to enable innovation and growth of India to just collecting taxes blindly.
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is there any risk involved with this? please comment if you been submitting fake receipts since a long time and how you do it.
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