I see a lot of people faking rent to get tax exemptions. What I will write applies to ANY tax claims you're making.
If the rent is not legitimate as in the property does NOT exist and you do NOT reside there then you are committing TAX FRAUD.
Providing forged documents to avail tax exemptions in India can have serious consequences, including legal penalties and fines. Under the Indian Income Tax Act, it is a criminal offense to furnish false information or documents with the intent to evade tax. If caught, you could be charged with tax fraud, which is punishable by imprisonment and fines. Additionally, the tax authorities may disallow the tax exemptions claimed on the basis of the forged documents, and you may be required to pay back any taxes that were improperly claimed.
So forget about making rent payment slips, bank transfer slips and others. That only provides IT with the evidence that you're committing intentional and willful tax fraud.
In case you do not know IT might ask for additional documents such as property titles, bills, letter and so on to prove the claim is legitimate specially when there's red flags such as renting to close relatives, no/incorrect/fake PAN furnished, etc.
And believe me, if they find anything that indicates tax fraud or tax evasion they'll look back and dig further, even back to several years ago and you will be liable for all of it.
Needless to say, the same applies to ANY other tax exemption.
One thing is being an idiot and unintentionally or unwillingly submit an incorrect ITR, that will STILL get you punished but no biggie except for the big fines (which can be several times the tax owed) and the costs incurred into getting it fixed by hiring a CA or tax lawyer.
But submitting FORGED documents and committing several actions to hide the fact is called TAX FRAUD. And I have no nice words for you because you asked for it.
Play stupid games, win stupid prizes.
Commit tax fraud, win a prison stay and/or get financially ruined.
If the rent is not legitimate as in the property does NOT exist and you do NOT reside there then you are committing TAX FRAUD.
Providing forged documents to avail tax exemptions in India can have serious consequences, including legal penalties and fines. Under the Indian Income Tax Act, it is a criminal offense to furnish false information or documents with the intent to evade tax. If caught, you could be charged with tax fraud, which is punishable by imprisonment and fines. Additionally, the tax authorities may disallow the tax exemptions claimed on the basis of the forged documents, and you may be required to pay back any taxes that were improperly claimed.
So forget about making rent payment slips, bank transfer slips and others. That only provides IT with the evidence that you're committing intentional and willful tax fraud.
In case you do not know IT might ask for additional documents such as property titles, bills, letter and so on to prove the claim is legitimate specially when there's red flags such as renting to close relatives, no/incorrect/fake PAN furnished, etc.
And believe me, if they find anything that indicates tax fraud or tax evasion they'll look back and dig further, even back to several years ago and you will be liable for all of it.
Needless to say, the same applies to ANY other tax exemption.
One thing is being an idiot and unintentionally or unwillingly submit an incorrect ITR, that will STILL get you punished but no biggie except for the big fines (which can be several times the tax owed) and the costs incurred into getting it fixed by hiring a CA or tax lawyer.
But submitting FORGED documents and committing several actions to hide the fact is called TAX FRAUD. And I have no nice words for you because you asked for it.
Play stupid games, win stupid prizes.
Commit tax fraud, win a prison stay and/or get financially ruined.
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