IT Dept sending notices on fake HRA claim

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The Income Tax Department is keeping an eye on those who claim refunds by submitting fake rent and donation bills along with other fake receipts.

In particular, salaried individuals are on the radar of the Income Tax Department. After identifying such people, the Income Tax Department is sending them notices. Now, such people will have to present documentary evidence to prove their claim for income tax returns.

This notice has been issued under section 133(6) of the law. The department is sending notices to salaried individuals to present evidence for claiming exemption under section 10 (13A) for House Rent Allowance (HRA).

Similarly, for claims for allowance for keeping a helper for work under section 10 (14) and for deduction on interest paid on home loan under section 24 (b) of the IT Act, notices are being sent.

Why you should be cautious while claiming ITR? The Income Tax Department is making extensive use of technology to increase the tax base. This is why people making false claims have been identified. Now such people are being asked for answers by sending notices. Action can also be taken against them according to the provisions of the IT Act.

So, experts say that people, especially individual taxpayers, need to be cautious while claiming ITR. Now they cannot escape like before. Violation of rules can even cost salaried individuals their jobs, so only make claims for the right things.

How many ITRs have been filed so far? According to the Income Tax Department, more than 3 crore income tax returns have been filed till July 18, 2023. This year, the figure of 3 crore has been achieved 7 days earlier compared to last year. Last year, 3 crore income tax returns were filed by July 25, 2022.

The last date for filing Income Tax Return (ITR) for the year 2022-23 is July 31, 2023. The Ministry of Finance has already made it clear that the last date will not be extended. In such a situation, those who have not yet filed ITR should do it immediately.