House Rent News Update: If you pay rent in cash, the Income Tax Department may send you a notice. You’ll need to provide proof of payment. Experts recommend paying rent by check or online, so you have a bill for the payment…
Cash Rent Payment: Do you also live on rent and pay your landlord in cash? Just think. This rent could become a thorn in your throat, one you’ll neither be able to swallow nor spit out. If you pay your house rent in cash, be sure to read the Income Tax Department’s rules.
What are the Income Tax Department’s rules?
If you pay rent in cash, you may receive a notice from the Income Tax Department. Upon receiving the notice, you’ll need to prove that you paid the rent in cash. Failure to do so could result in a fine.
Experts always advise that rent payments should always be made by check or online. This will provide you with a bill for the payment, which you can submit to the Income Tax Department. Often, when the Income Tax Department issues a notice after paying rent in cash, the taxpayer lacks proof of the rent. Therefore, rent payments should always be made online.
What to do if you receive a notice?
When the Income Tax Department detects a discrepancy between your income and expenses, it issues a notice. If you’ve received a notice from the Income Tax Department, there’s no need to panic. You’ll need to respond to the notice. To do so, you’ll need to submit the questions asked in the notice, proof of payment, and certain documents.
How to avoid an Income Tax notice?
To avoid an Income Tax notice, it’s crucial to keep a complete record of your income and expenses transparently and digitally. Especially if you make rent or other large payments in cash, it’s best to do so via check, bank transfer, or UPI.
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