The IT Department is closely examining taxpayers’ donation claims, especially those made to religious institutions.
These notices are specifically related to house rent allowance (under section 10(13A)) for salaried individuals, allowances (under section 10(14)) for hiring an assistant for official duties, and deductions (under section 24(b) of the IT Act) for interest paid on home loans. This tool will aid in identifying income taxpayers who have submitted false or fraudulent documents in their returns.Īs per Times Now’s report, the IT Department has issued notices to certain taxpayers, requesting them to provide documentary evidence to substantiate their claims for tax exemption. Recently, the IT Department has implemented a software solution to detect fake documents in ITR filings. It is mandatory to avoid false house rent receipts, inflated loan claims, or deceptive donation declarations, as these are tactics often used to dodge taxes. The deadline to file your ITR for the financial year 2022-2023 is July 31. Various deceitful practices, such as submitting fake rent receipts under the guise of relatives, making false donation claims, and exaggerating loan-related deductions, have been flagged and are under scrutiny.
The department has taken action against those who have been submitting false or inaccurate income tax returns (ITRs). The Income Tax (IT) department has upped its efforts to combat tax evasion among salaried individuals, reports say.
