Union Budget 2025: Submitting fake rent receipts? Here’s how the Income Tax Department can catch you!
As Finance Minister Sitharaman prepares for Budget 2025, taxpayers must be aware of how the Income Tax Department uses AI to detect fake
As Finance Minister Nirmala Sitharaman gears up to present the Union Budget 2025 on Saturday, February 1—her eighth consecutive budget—taxpayers are eagerly awaiting potential tax policy changes. While both the old and new tax regimes provide legitimate ways to save on income tax, some individuals attempt to misuse exemptions by submitting fake rent receipts. However, with AI-driven scrutiny and advanced data analytics, the Income Tax Department has enhanced its monitoring systems to detect such fraudulent claims. Here’s how authorities identify fake rent receipts and why tax fraud can lead to serious consequences.
Fake Rent Receipts Can Lead to Tax Penalties
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AI and Data Analytics Help Identify Fraud
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PAN Verification of Landlords is Mandatory for High-Rent Claims
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Mismatch with Form 16 and ITR Can Raise Red Flags
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Old Tax Regime: Understanding the Tax Slabs
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New Tax Regime: Revised Tax Slabs
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HRA Claims are More Beneficial Under the Old Regime
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Taxpayers Must Provide Proof of Rent Payment
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I-T Department Sends Notices for False Claims
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Employers May Cross-Check Rent Receipts
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AI-Based Monitoring Tracks Repeated Fraud Attempts
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Why Do Taxpayers Commit HRA Fraud?
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Penalties for HRA Fraud Can Be Severe
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How to Claim HRA Without Risk
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The Future of AI in Income Tax Compliance
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