Furnishing fake rent receipt to lower tax burden? Not anymore

Have you been filing fake rent reciepts to lower your tax burden all these years? Well you may no longer be able to claim income tax deductions for house rent allowance (HRA) by provide fake bills anymore.

As per a report in the Economic Times, the income tax department is making efforts to plug leakages under tax provisions by tightening noose around tax exemptions.
“The assessing officer can now demand proof — such as leave and licence agreement, letter to the housing co-operative society informing about the tenancy, electricity bill, water bill etc. — in allowing a lower taxable income as computed by a salaried employee,” a report in the ET said.

However, if you pay more than Rs 1 lakh annually towards house rent, then quoting landlord’s PAN is mandatory for claiming tax benefit under House Rent Allowance

By Zee Media Bureau April 5, 2017