October 31, 2020

Itax Software

Income Tax Software

Salaried taxpayers beware! Claiming false HRA, other benefits through ITR may land you in trouble With Automated Income Tax Revised Master of Form 16 Part A&B For F.Y. 2019-20 ( 100 and 50 Employees)

Income Tax Return e-Filing
for AY 2019-20: For false claimants of HRA, other exemptions, it may turn out
to be nothing but inviting trouble.
To
save some extra tax, many taxpayers, in their Income Tax Return (ITR), show
that they are staying in rented accommodations by paying a monthly rent of
around Rs 8,300, and claim the tax benefits on House Rent Allowance (HRA) by
taking advantage of the Income Tax rule that there is no need to disclose
the PAN of one’s landlord for paying rent up to Rs 1 lakh per annum.
However, they refrain from declaring such things to
their employers as the accounts department stringently demand the rent
agreement and rent receipts to admit the claim and include it in Form 16.

  The
main feature of this Excel Utility:-
1)  
Prepare At time 100 Employees
 Excel Based  Form 16 Part A&B ( Modified Format of Form 16 Part B Vide CBDT
Notification No.36/2019 Dated 12/04/2019 ]
2)  
All the Amended Income Tax
Section have in this utility as per Budget 2019
3)  
You can print individual Form
16 Part  A&B
4)  
Most easy to install just
like an Excel File
5)  
Easy to Fill all column
6)  
Automatic Convert the Amount
to the In-Words
As
there is no need to submit any document while filing ITR, they take it for
granted and either include the false claims of their own or in some cases pay a
percentage of the tax saved to the person filing ITR on their behalf to make
the false claims.
But
things will change now, as from this year the format of Form 16 has been
changed to make it in sync with the format of ITR, so that the two documents
may be reconciled electronically after e-filing of Income Tax Return 2019-20
and system generated notices may be sent in case of any discrepancies.
“Issuing of new Form 16 is a good move and the major
reason for all these changes is to ensure that Form 16 is in sync with the ITR
Form, which will help the Income Tax Department in electronically matching the
data reported in ITR with all the data which it has gathered from various
sources.

 The
main feature of this Excel Utility:-
7)  
Prepare At time 50 Employees  Excel Based  Form 16 Part A&B ( Modified Format of Form 16 Part B Vide CBDT
Notification No.36/2019 Dated 12/04/2019 ]
8)  
All the Amended Income Tax
Section have in this utility as per Budget 2019
9)  
You can print individual Form
16 Part  A&B
10)                    
Most easy to install just
like an Excel File
11)                    
Easy to Fill all column
12)                    
Automatic Convert the Amount
to the In-Words
“The
new Form 16 is very comprehensive and everything is required to be reported in
this form. All allowances like HRA, LTA, Pension, Leave Salary etc are required
to be reported in the form as separate items. If there is any item which is not
disclosed in the manner prescribed – the Income Tax Department may not be able
to reconcile everything and a notice may be issued electronically to explain
the variance.
So,
in case you are not staying on rent or at least your employer is not revealing
this in Form 16, be prepared to get an Income Tax Notice from this year
onward for declaring the same in your ITR.
Talking
on the consequence of the mismatch between Form 16 and ITR regarding HRA tax an exemption, Batra said, “In such a case the claimant may receive a notice and
will have to submit rent receipts, rent agreement and bank statement to claim
the exemption.”
The need of bank statement is to show the money trail
that the rent is actually paid and is the most crucial evidence. This is
because the rent agreement and rent receipts may be made quite easily with
consent of another party, but unless you are actually paying the rent, it will
be hard to fake the money trail.

 

There will be no problem for genuine claimants, as all the proper documents
to support the claim

will be in place, but for false claimants, it may turn out
to be nothing but inviting trouble.

So,
with the government taking serious steps to plug the loopholes, it’s better
for your own good to stop making false HRA and other claims to get some extra
tax benefits.

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