TAX Saving | Fuel Reimbursement
Hello All, Does Anybody have ideas about the below thing
My company gives fuel reimbursement and if I make alteration to the registered name on my friend's RC duplicate copy for the purpose of tax savings, could there be any potential issues?
Any suggestions are most welcome
Thank you
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This is a fraud, the savings in Tax is not worth it. If your returns are picked for random checking by the auditor or income tax department the minimum that can happen is that you are fired.
Why would he be fired for auditing tax returns? How would his employer come to know that he received a notice? You are over exaggerating. I deal with tax notices and I have a CA in my team too.
The company takes any fraud seriously hence people were fired, one for fake HRA another for fake reimbursement claims.
Your LTA/HRA/Fuel expense is reimbursed by the company and it shows up in your form 16. When your return is picked up by the Income Tax Department they ask your employer/their auditors to submit the proof for your claims and hence they will get to know about it.
In another instance there was a fake reimbursement claim that was caught because the company's auditors/some employee in the finance department did a spot check calling the vendor and it was found fake.
Practically, no issue.
I know at least two different instances of people being let go due to fraud claims on HRA/fake invoices etc. in two different companies where I worked. Hence this is not the right advice to OP.
One friend I know got rap on the knuckle for submitting fake travel reimbursement. His next time will be his last time.
Companies treat fraud seriously.
Risk/Reward - Not worth it in grand scheme.