Every taxpayer has the right to save on taxes legally, but some misuse this by submitting fake documents for tax exemptions. The Income Tax (I-T) department uses artificial intelligence (AI) to detect such fraud, particularly with fake rent receipts.
Every taxpayer has the right to save on taxes within the bounds of the law. Both the old and new income tax regimes offer various sections dedicated to tax-saving opportunities. While it is beneficial for taxpayers to take advantage of legitimate tax-saving measures, some resort to unethical practices like producing fake documents for tax refunds or exemptions. They mistakenly believe they can outsmart the Income Tax (I-T) department. However, in the era of artificial intelligence (AI), the I-T department has sophisticated methods to detect fraudulent activities. As the deadline for filing Income Tax Returns (ITR) approaches on July 31, 2024, it is crucial to understand how the I-T department identifies fake rent receipts.
