ITR Filing: This mistake will be huge in filing tax return, 200% penalty may be imposed

By
Pravesh Maurya
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ITR filing: Now only 1 day is left to file income tax return. The tax department is rapidly working on processing the returns of taxpayers. Along with this, the taxpayers who submit fake bills of rent to save tax are also being tracked. The Income Tax Department has become strict about filing fake tax returns on employed people. Many taxpayers are submitting fake bill of rent or fake amount of donation to avoid their tax liability. The tax department is probing them very quickly.

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Under income tax rules, if a salaried person lives in a rented house, then without the PAN of the landlord, he does not have to pay any tax on rent up to Rs 1 lakh. But many people are resorting to fake rent bills to take advantage of it.

This is the reason that this time an increase in the number of notices being sent to taxpayers is also being seen. Details are also being sought from the tax department regarding the proof of deposit of rent in the notice.

Penalty up to 200% may be imposed
The Income Tax Department is duly investigating such claims and ascertaining whether the claims are valid or not. If any discrepancy is found, a notice is also being sent by the tax department. In a media report, it has also been said that on such irregularities, a penalty of up to 200% of the tax liability is being imposed by the tax department. In such a situation, it is important that as a taxpayer, you avoid giving any wrong information in your return.
If you want to avoid notice, keep these things in mind: –
  • Avoid giving any wrong information in tax filing.
  • Submit only valid rental agreement as proof of rent.
  • If possible, pay for the rent online or through cheque.
  • Provide PAN details of the landlord if the rent exceeds Rs 1 lakh in a business year.
  • Keep records of all types of utility bills.
The notice is sent by the Income Tax Department for many reasons. Normally, this notice is sent by the tax department for many reasons including late return filing, wrong return filing, wrong tax refund demand. The notice is sent by the Income Tax Department under sections 143(1), 142(1), 139(1), 143(2), 156, 245 and 148 of the IT Act.
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