The Problem

Don’t become Uncle Scrooge. You may be able to save some money in the short run by deploying some tactics, but the chances of them coming back on to you is a reality today. People for long have been using multiple PAN cards, claiming some deductions on one and some on the others. Tax arbitrage on financial instruments is another factor which is up for misuse. However, many of these loopholes are being plugged, such as the equal time period on investments to claim tax rebates. Claiming benefits in offices are common and many of these are treated more as entitlements than actual spends. Forged bills and vouchers are a common practice till one is caught, which is becoming easy these days because of automatic tracking devices for claims.

Example

Many people claim HRA benefits when they live with their parents. There are instances when both the spouses claim HRA benefits from the same rent receipt. Forged travel refunds and medical reimbursements are a common occurrence, which is assumed to be a done thing.

Suggested intervention

Do not go beyond what is due for you. Executives claiming driver allowance and then self driving the car are no longer warned—they are sacked. Instead of exploiting loopholes, mention their existence to relevant authorities in your organisation for a speedy recourse. Do not resort to cheating and cooking up bills as many organisations have started deploying smart software that throws up any aberration in the submitted bills. On its part, the government has created systems that are checking on pilferage and misuse. Be transparent and correct in your financial dealings for a hassle free future.

Tip

Do not let greed get the better of you. Claim what is rightfully yours and what you deserve. There is no point in pinching a few rupees when the adverse outcome could cost you in lakhs and even your career.

Read: Inside the Mind of Investors

olmdesk@outlookindia.com