Fake property rent receipt can no longer help reduce tax
Posted on: 05/Apr/2017 3:51:49 PM
Among the easy ways to reduce tax burden is getting fake property rent receipt. You perhaps get it from your own parents or relatives. This however might not be possible any longer. The income tax department now demands valid proof that the tax payer who is in disguise of a tenant is actually a tenant in the property in question.
Just with a sham rent receipt of rent, a salaried employee can cut down his tax payment by 60 percent. This is done in the name of house rent allowance.
According to the rental tribunal ruling, tax payers ought to produce proof like license agreement, letter submitted to the housing cooperative society regarding their tenancy at the specific property, electricity bill, water bill, and so on.
The Income Tax Appellate Tribunal has announced the terms that the assessing officer should consider for salaried employees when there is a need for justification.
