Deceptive Income Tax Refund Tricks That Can Put You in Trouble

Deceptive Income Tax Refund Tricks That Can Put You in Trouble

Photos: Pexels/Pixabay

Aug 24, 2023

Rajeev Kumar

Many taxpayers try deceptive ideas to claim higher Income Tax refunds. However, such taxpayers often end up getting notices. Let's have a look at such ideas you should never try.

Concealing actual income or reporting less income

Claiming exempt income even when the taxpayer is not eligible for it.

Claiming false deductions by declaring higher than actual tax-saving investments

Claiming tax deductions for which the taxpayer is not eligible

Not declaring casual income such as capital gains, prize money, winning from games and lottery etc.

Making false House Rent Allowance claim with fake rent receipts

Claiming allowances under Section 10 with fake receipts such as conveyance, helper and food allowances

Not reporting high-value transactions such as depositing over Rs 10 lakh in savings account, credit card payment over Rs 1 lakh, FD over Rs 10 lakh etc.

Instead of making fake claims or avoiding certain disclosures for higher refunds, ITR filers should try to avoid any deceptive practices to avoid income tax notices.

What should you do?

Learn more