Many people use different methods to avoid income tax. Some people invest in schemes which provide tax exemption. There are some people who submit rent receipts to get HRA exemption to avoid income tax.
As per the rules, there is some tax exemption on submitting rent receipts. Some people misuse this rule and submit fake rent receipts to avoid or reduce income tax. But they do not know that the Income Tax Department also keeps an eye on such people and can take action against them.
Help of AI tools
Now the Income Tax Department is using AI, i.e. Artificial Intelligence tool, to deal with those who take tax exemption by submitting fake receipts, through which the details given in the form are matched with the transactions related to the PAN card.
Let us tell you that if you submit a rent receipt of more than one lakh rupees, the Income Tax Department will also ask for the landlord’s PAN card number. After this, with the help of artificial intelligence, it will be matched whether the claim amount made by the tenant by submitting the receipt is also showing on the owner’s PAN card or not.
This will be the punishment
Those who are found guilty in the eyes of the Income Tax Department, that is, when it becomes clear from the documents of both the landlord and the tenant that the tenant has not paid the rent as claimed or has not paid the rent at all, then the Income Tax Department can take action. Under which, notice will be given to those who have submitted fake rent receipts. Form 26AS and AIS will play the most important role in this entire process.
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