Tax authorities on high alert.! PAN card loopholes.!
The Income Tax Department has uncovered instances of house Rent Allowance (HRA) fraud stemming from the misuse of PAN cards. Cases have emerged where individuals are exploiting HRA benefits without being genuine tenants, and some are manipulating HRA deductions unlawfully. The department has identified approximately 10,000 high-value cases involving amounts exceeding Rs 10 lakh.
Subsequent investigations expanded the scope of the probe, unveiling numerous cases where PAN cards were extensively misused. Individuals have been found fraudulently claiming HRA benefits from their employers, with some instances even involving multiple employees using the same PAN card for tax deductions.
As per reports from the Times of India, tax authorities are gearing up for recovery actions against employees involved in such fraudulent claims. However, it remains uncertain whether legal action will be pursued against these individuals. The current tax regulations mandate TDS deduction only for rental payments exceeding Rs 50,000 per month, prompting many employees to exploit this loophole to evade taxes on rental income.
Subsequent investigations expanded the scope of the probe, unveiling numerous cases where PAN cards were extensively misused. Individuals have been found fraudulently claiming HRA benefits from their employers, with some instances even involving multiple employees using the same PAN card for tax deductions.
As per reports from the Times of India, tax authorities are gearing up for recovery actions against employees involved in such fraudulent claims. However, it remains uncertain whether legal action will be pursued against these individuals. The current tax regulations mandate TDS deduction only for rental payments exceeding Rs 50,000 per month, prompting many employees to exploit this loophole to evade taxes on rental income.