I have seen that many persons claim deduction u/s 80C without actuall investment. So my question is how department is tracking these things or is this a loophole in the tax department that can be used for tax savings??
23 September 2016
There is a difference between tax planning and tax evasion. Sadly, what you are referring is true. But it should not be deemed that it is a loophole or tax department can never catch you. Our system is of self assessment. Department blindly believes what you are showing is true and the scrutiny cases are 2-3% at maximum. But coupled with strong IT department is becoming more vigilant and strong in every field and believe me after IDS, one will be seeing the wrath on the persons doing these types of things. The persons doing so are not only evading tax but also hampering the economic development of their own motherland. In the end i would strongly recommend to refrain from these type of activities.
CAclubindia
