ITR Filing: IT dept scanner on salaried taxpayers for bogus rent receipts, fake deductions

The income tax (I-T) department is looking into reports of fraudulent use of rent receipts and home loan certificates while filing income tax returns (ITR) by salaried taxpayers. 

As per a report in Moneycontrol, the IT department scanner is on salaried taxpayers who filed ITR and claimed benefits using several unethical methods, oft promoted by some tax experts promising lower tax outgo. Taxpayers reportedly using bogus rent receipts, home loan deductions, and fake donations among others to evade taxes are under the lens of the IT department. 

As per other reports in national media, the Government is reportedly using software to zero in on these fraudulent ITRs. The reports mentioned that the IT department, after finding red flags generated by the software sent notices to taxpayers. The notices were sent for discrepancies observed in benefits claimed under several sections including Section 10 (13A) for exemptions under House Rent Allowance (HRA); Section 10 (14) for exemptions under Helper Allowance and Section 24 (b) for deduction claimed on taxable income for interest paid on home loan. 

The report quoted experts saying that the sleuths are using ITR data to trace any discrepancies in the claimed and actual figures. The IT sleuths verify the ITR data with the data collected from external sources to confirm the veracity following which notices are issued to furnish documentary evidence of the payments made for which the deductions have been claimed by the taxpayers.