Beware of Misusing Tax Exemptions: Income Tax Department Initiates Notice Process: The Income Tax Department has initiated sending notices to salaried individuals requesting evidence of deductions and exemptions claimed in the Income Tax Return (ITR) Form for the Assessment Year 2023-24.
Salaried individuals can claim various exemptions and deductions related to HRA, LTA, housing loan, insurance, ELSS, and medi-claim to save on taxes under the old tax regime.
However, misuse of these provisions by individuals for fake tax exemptions could result in an Income Tax Notice. Tax professionals and chartered accountants should ensure no fake tax claims are made while filing ITR. It is suggested to opt for the new tax regime, which has become lucrative after the Budget 2023, instead of claiming incorrect exemptions or deductions.
