5 Tax-Evasion Practices To Keep A Check On
#Claiming Both HRA & Housing Loan Benefits
This needs a smart touch. A salaried person gets tax deductions if he is at the same time paying off a home loan. Under Sec 10(13A), you can also get tax reduction when you have HRA and you are staying away from your own property.
"Dual claim is allowed when a person is staying in another city on rent while the property bought is in a different location," says Anil Rego, CEO of Right Horizons, a wealth management firm. It turns difficult to convince the tax department if both the HRA and home loans happen in the same city.
#Trying to transfer tax burden
To get tax benefits, making investments and properties in the name of family members is a common method. In case of transferring, if any income is generated out of the transferred investment, then the tax return falls under the major payer’s name and not his family. 
So when you show these types of incomes, be cautious.
"Proportionate income, as per the ownership percentage, should be added to the each of their incomes and tax will be levied on the same. If they flout this rule, interest for the period will be recovered and there is scope for penalty to be levied under section 271(1)(c)," says Arvind A Rao, a chartered accountant and certified financial planner.
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