Rent, home loan claims to come under I-T lens

With increased use of artificial intelligence for analysis, the income tax department has started asking taxpayers about suspect deductions claimed for house rent and housing loan interest. According to chartered accountants, many taxpayers show that they are living in a rented property that actually belongs to close relatives. In cases where such taxpayers show they are paying rent, the receiver does not mention this rental income in their returns. Similarly, some taxpayers claim bogus housing loan interest deductions and the I-T department is seeking details about such claims as well. Chartered accountants say some salaried taxpayers use dubious means to save taxes because of the high cost of living and education and fewer deductions available.
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