Income Tax Notice: The Union Finance Ministry has recently given a big gift to the taxpayers, but this exemption is not being implemented from now. The exemption in income tax has been given for the next financial year 2025-26. It will come into effect from April 1. But, in the cases of the current financial year and last year, the Income Tax Department is sending notices in quick succession. As per the rules of the Income Tax Department, a penalty of 200 percent will also have to be paid.
Income Tax Notice: If you are a taxpayer, then this article is of your use. Let us tell you that notices are being sent in quick succession to the taxpayers by the Income Tax Department. A heavy penalty will also be recovered from the taxpayers. The action plan has also been started by the Income Tax Department to collect the fine.
In fact, the Income Tax Department has given many measures to save income tax under the old regime. This includes house rent and many other insurances etc. To save income tax, you have to submit the house rent receipt in February or March. Sometimes other documents are also accepted.
Such cases also come up
Actually, many taxpayers have been taking advantage of the income tax exemption under the old regime. In such a situation, there are many cases in which they do not take the receipt (Income Tax Notice) from the landlord, and instead get a fake house rent receipt made themselves. It is not easy to escape from this trickery now, it is going to be caught. The Income Tax Department has prepared the entire plan.
Detection is being done with the help of special software
The Income Tax Department is taking the help of a special software to catch the receipt fraud. With the help of this software, it has become easy to catch the fake documents submitted by the taxpayers. The Income Tax Department is sending notices to such taxpayers in a hurry. Exemption documents are being sought by sending notices.
These documents are being investigated
The Income Tax Department is showing strictness on cases of fake documents. In the eyes of the Income Tax Department, there is house rent receipt, receipt of hiring an assistant for official duty and receipt of interest paid on home loan. Many such fraud cases have come to the fore.
Cases of financial year 2023-24
Cases of assessment year 2023-24 are on the radar of the Income Tax Department. Notices are being sent to such people. Notices are being sent as per section 133(6) of the IT Act. According to this section of the law, the tax assessing officer can ask for information about the transactions made in a particular period. This is their right. Taxpayers will have to give information about this.
This is how fake documents were prepared
To save income tax, taxpayers used Section 10 (13A) of the IT Act under the old regime. Under this, the benefit of tax exemption is also available on house rent. According to the law, if the house rent is more than one lakh, then you have to provide the landlord’s PAN card. There is no need to provide PAN card if the rent is less. Taking advantage of this, people got slips made in the name of their relatives. Who are being caught during investigation.
Income Tax Department caught the fraud
Income Tax Department has found another fraud. In this, taxpayers are taking advantage of tax exemption by submitting rent slips despite having their own house to save tax. At the same time, these cases are now being caught in the software of the Income Tax Department and preparations are being made by the Income Tax Department to send notices to such people.
This is why this fraud happens
Cases of fraud keep coming up in the old regime regarding house rent (tax on house rent). The biggest reason for this is that a lot of tax (Income Tax) can be saved by this. In the old regime, if someone has paid rent of Rs 2.40 lakh annually, then your entire tax is saved. In this, you should have received this house rent allowance from the company.
How much is the penalty
If someone submits a fake bill to the institution to save tax, then this case becomes a direct case of hiding income. In such cases, the income tax officer can open an investigation. He can ask for the receipt of your bill and you will also have to give proof of its authenticity. If you are unable to do so, then as per section 270A (1), a 50 percent fine can be imposed. On the other hand, if someone deliberately submits a fake bill, then a penalty of up to 200 percent will have to be paid.
