Hi All,
Good evening.
I need some information and would request the experts to help me with it. Can an organization penalize a couple for claiming HRA exemption to the extent that they are terminated? Isn't it the IT law that is to decide on the action?
Request for your help.
Regards,
From India, Hyderabad
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Good evening.
I need some information and would request the experts to help me with it. Can an organization penalize a couple for claiming HRA exemption to the extent that they are terminated? Isn't it the IT law that is to decide on the action?
Request for your help.
Regards,
From India, Hyderabad
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Thanks, Mr. Arora. Here, the issue was that the couple was unaware of the law, and both have submitted for HRA exemption. They didn't share and it was the total rent for each individual. They did it last year as well; however, this year the company asked them to leave, stating that the documents are forged. So, I wanted to know, can an HR take such a step for documents related to the IT department.
From India, Hyderabad
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From India, Hyderabad
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If a company becomes aware that an employee is attempting to evade income tax by submitting forged documents, I think it is legally obliged to inform the relevant tax authorities. Tax evasion is a crime and should be reported.
From India, Mangaluru
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From India, Mangaluru
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I have few questions
Is there any person who can accept/admit that he/she has never submit forged documents (HRA receipts) or anything like and not going to do the same in future for sure?
Is there any person/employer can admit/accept that he/she has never accept ed forged documents (HRA receipts) or not going to do the same in future too?
Please thing about it once.
Yes I agree with “FreeBirdConsultant “ that Tax invasion is a crime and should be reported but how many of you have reported or have raise voiced to stop this.
From India, Gurgaon
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671Is there any person who can accept/admit that he/she has never submit forged documents (HRA receipts) or anything like and not going to do the same in future for sure?
Is there any person/employer can admit/accept that he/she has never accept ed forged documents (HRA receipts) or not going to do the same in future too?
Please thing about it once.
Yes I agree with “FreeBirdConsultant “ that Tax invasion is a crime and should be reported but how many of you have reported or have raise voiced to stop this.
From India, Gurgaon
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I agree with Mr. Arora, and in my view, all persons working in any organization do not share equal knowledge of taxation. It is the duty of the Accounts in Charge or the Finance Head to guide the couple on any forged documents as soon as they receive the investment declaration form or analyze the forged documents. It is the employer's duty to deduct TDS from the salary so that if any forged documents are submitted by the couple, the same can be avoided at the time of deduction. I am also of the opinion that no one comes with experience in all fields. Since this subject is not relevant to the couple, they might have committed forgery by mistake or unknowingly. Therefore, the issue should be addressed, and they should be given a warning or some form of punishment, not to the extent of termination.
Thanks & Regards,
Saji
From India, Ahmadabad
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Thanks & Regards,
Saji
From India, Ahmadabad
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I totally agree with Saji. I feel it's the responsibility of HR and Finance to guide the employees. Moreover, the mistake was made unknowingly, and the same documents were accepted the previous year. So, the question arises as to why the previous year documents were considered. They are planning for legal action and would appreciate your inputs on the same.
From India, Hyderabad
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From India, Hyderabad
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Employer can lose the legal battle. Irrespective of whether the mistake was made unknowingly or knowingly, termination of service was totally unjustified. The employer does not have the authority to take any penal action on behalf of the Income Tax Authorities. At most, the employer could have reported the matter to the IT authorities for reassessment of the income tax. Only the Assessing Officer was authorized to impose any penalty, as prescribed by law for less deposit of tax or submission of false return by the employees.
From India, Delhi
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From India, Delhi
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How can they go for legal since the couple has not done any harm to the company? With regards to the forged documents, when the company came to know that they were forged, they would have considered them null and void and deducted the tax without considering the HRA exemption. If the company has already filed a legal suit, let the employee also file a cross-legal suit against the employer. They can also approach the labor court for help. The couple does not need to worry at all since even legal action will not help the employer. As mentioned by Mr. Dhingra, the couple can file a revised return, which will sort out their worries.
Thanks & Regards,
Saji
From India, Ahmadabad
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Thanks & Regards,
Saji
From India, Ahmadabad
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Oh my god, such a big issue for a meagre HRA receipt. I, being in accounts, have seen so many cases where the employee submits fake rent receipts for HRA exemption, and even the employer accepts it. Sometimes, the employer even encourages employees to give fake rent receipts.
Based on the declaration of the employee, the disbursing officer has to deduct TDS accordingly. Also, if the monthly HRA is less than 3000, then the DDO has the option of not collecting rent receipts and just giving HRA exemption based on the declaration. Rent receipt is not mandatory if the HRA earned per month is less than 3000.
Even if you report this to IT authorities, the company/employer will face more stringent action as, in spite of knowing they are a couple, he accepted their claims for HRA exemption. This might be in terms of tax planning; the husband and wife forgot to tell each other. According to them, they did not know the other is also going to claim HRA exemption. The maximum that the couple will need to pay is some fine with interest, that's all.
From India, Madras
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Based on the declaration of the employee, the disbursing officer has to deduct TDS accordingly. Also, if the monthly HRA is less than 3000, then the DDO has the option of not collecting rent receipts and just giving HRA exemption based on the declaration. Rent receipt is not mandatory if the HRA earned per month is less than 3000.
Even if you report this to IT authorities, the company/employer will face more stringent action as, in spite of knowing they are a couple, he accepted their claims for HRA exemption. This might be in terms of tax planning; the husband and wife forgot to tell each other. According to them, they did not know the other is also going to claim HRA exemption. The maximum that the couple will need to pay is some fine with interest, that's all.
From India, Madras
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Dear Members,
Please read carefully!! Fake rent receipt could cost you your job: HC - News18
From India, Mumbai
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Please read carefully!! Fake rent receipt could cost you your job: HC - News18
From India, Mumbai
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