Consequences for Booking false bill to reduce tax liability

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A company could face significant repercussions if it allows employees to submit false bills, such as fictitious commissions, to reduce tax liabilities. While payments made following tax laws are generally allowed, the Income Tax Department can disallow these expenses if a complaint is made. Employees aware of such practices can report them to the Income Tax Department.

Daya

Daya (Querist)
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06 June 2020 in a company suppose a sales staff to reduce TDS amount on his salary he takes as a commission amount to his wife name from which he can minimize his TDS amount . can company face any consequences on complaint made to income tax department.

c.bakshi

c.bakshi (Expert)
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07 June 2020 IF THE COMPANY MAKES THE PAYMENT BY FOLLOWING THE PROVISIONS OF INCOME TAX ACT, 1961 AND THEN EXPENSES CAN BE ALLOWED. HOWEVER, ON COMPLAINT MADE TO INCOME TAX DEPT. SUCH EXPENSES WILL BE DISALLOWED TO THE COMPANY.

Daya

Daya (Querist)
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07 June 2020 if a employee knows the issue then where have to complain . please advice me.

c.bakshi

c.bakshi (Expert)
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09 June 2020 YOU CAN GO TO INCOME TAX DEPT

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