IT department has issued strict rules for those showing fake rent in ITR, check immediately before filing ITR?

how IT department identify fake rent receipts: Every taxpayer can try to save tax by staying within the ambit of the Income Tax Act. Be it the old method or the new one, both give many options to save tax. But the difficulties of those who adopt wrong methods to save tax have increased now. For example, some people file tax returns by making fake receipts. They think that they can fool the Income Tax Department. But in the age of AI, the Income Tax Department has a very good technology to catch such fake methods. The last date for filing income tax returns is 31 July 2024, so it is important to know how the Income Tax Department catches fake rent receipts.

With the help of AI: The Income Tax Department is now detecting fake rent receipts using Artificial Intelligence (AI). It does this by combining Form-16, AIS Form and Form-26AS.

AI Verification: You get tax exemption on HRA received on rent, but for this you will have to show the correct rent receipt. Now the Income Tax Department is using Artificial Intelligence (AI) to find out whether you are saving tax by showing fake receipts.

What are the HRA rules?: To show HRA as a deduction, it is first necessary that your company pays you HRA. If the rent for the whole year is more than ₹ 1 lakh, then the PAN number of the landlord will also have to be given. After this, the Income Tax Department matches the HRA declared by you with the transactions related to the landlord's PAN, which are recorded in the AIS form. If any difference is found in the amount declared and the recorded transactions, then the department can send you a notice.

If the rent is less than Rs 1 lakh then no tension: If you pay rent of less than Rs 1 lakh per year, then it is not necessary to disclose the PAN of the landlord. In such cases, the Income Tax Department usually does not investigate HRA claims up to Rs 1 lakh.

AI is catching fraud: Many people adopt fraudulent methods to take advantage of HRA. This is because if you show more rent, you do not have to pay tax on that amount. In this greed, some people submit fake receipts, thinking that they will not be caught. But, the AI ​​systems of the Income Tax Department have now become quite capable of catching such fraud and the department sends notices in such cases.