Answer

1. F

   Facts

   False claims such as fake rent receipts or donations never made are misreporting of income. They can lead to tax, interest and a penalty of 200% of the tax on the misreported income, and the department actively checks such claims using data.

2. P

   Provisions and law

   • Sec 270A, Income-tax Act 1961 (now Sec 439)Penalty of 50% of tax on under-reported income, and 200% where income is misreported, for example through false claims.
3. A

   Analysis

   Say ₹2,00,000 of HRA is claimed on fake receipts at a 30% slab. Tax of about ₹62,400 with cess becomes payable, and the misreporting penalty can be about ₹1,24,800, besides interest. The department matches landlord PANs, rent received in the landlord's returns and AIS. Claim only what you can prove with real payments.

4. C

   Conclusion

   1. 1Claim only rent actually paid with bank proof.
   2. 2Make sure the landlord reports the rent.
   3. 3Avoid agents who offer receipts or deductions for a fee.
   4. 4If a past claim was false, consider a revised or updated return.
   5. 5Reply honestly to any verification query.

Updated returns are not allowed in some cases, such as when a notice for that year is already pending.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.