Income Tax Dept Issues Stern Warning: Avoid Bogus Bills for Deductions or Face Serious Action!

The Income Tax Department is alerting taxpayers: do not attempt to use "bogus" invoices to gain undue tax benefits. There are reports that a number of persons who used fake invoices or claimed nonexistent expenses to evade tax have been dealt with more harshly than expected.Every individual who pays taxes is entitled to the tax deductions which lower their taxable income. These deductions should, however, be supported with proper proof of payment for the expenditure within the mentioned deduction categories, such as donations or business expenses. Falsifying documents to prove payments for non-existent transactions is a criminal offense and will incur heavy penalties.Department of taxes carry out a number of functions such as data analytics and other forms of audits to uncover such discrepancies. Taxpayers with proven guilt of submitting fake invoices stand to incur heavy punishment ranging from a fine, penalty interest on unsustainably taxed amounts, cancellation of tax benefits, and on more serious levels, legal action.Taxpayers should at all times be on the alert to ensure all documentation is properly kept. It is best to claim expense items that are supported through genuine documents which can be independently verified. Filling tax returns honestly and accurately protects one from incurring penalties.