Are they going to arrest people producing false rental receipts this year?

The new income tax Circular No– 05/2011 requires one to produce the PAN card of the landlord if the rent paid for the year exceeds Rs.180000. If the landlord doesn’t have a PAN card one should get a written declaration from him that his income is below the taxable income.
Will they be conducting checks? It seems they have implemented this rule due to the increase in the number of people producing false rental receipts. Naturally, I’m one of them and so I’m afraid.

4 Replies to “Are they going to arrest people producing false rental receipts this year?”

  1. Menthol JU!

    Are you paying monthly rent of more than Rs. 15,000? You have to be concerned only in such a case.

    However, arrest will not come for these small lapses. One would get a notice from the Department and if he produces necessary papers, no further action will be taken.

    However, Menthol, do not resort to false rental receipts. It is a challenge to your own conscience. I am glad that you have raised this question on a public forum. Why don’t you go ahead and pay the necessary taxes and avoid such situations.

    One has to be honest to oneself first, rather than worrying about false receipts and arrests.

  2. They won’t really be going door to door checking. But that doesn’t mean you can evade the duty! It’s much better to be on the safe side, and do as the law says.
    The rule is not just for preventing false rental receipts – its also to make sure your landlord is paying taxes on his income.

  3. Production of landlord pan is restricted to employer only ,not in income tax return .so Income tax department have no access of this information .it only to create fear .But it is advised that you should claim correct HRA exemption

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