my tax is likely to drop this year

[Rohit Bansal]

sorry am a nerd with financial terminology so please excuse me - here's my story

• I have been working with a company called ABC for the last 6 yrs, they had a pretty flat tax structure (i reckon it was easy for guys like me to understand). for 2013-14 i paid an income tax of 70k
• i have now joined a company called DEF....and here's the twist...each month i am asked to submit petrol bills, driver salary, newspapers bill, mobile+broadband and client expenses for an X amount. Well..i have been submitting these bills (some bills are fudged too) but of late i realised that if i continue to do so for the rest of the year my total tax paid will fall drastically as compared to the last few years.

I want to ask you guys (a) if there are any consequences that since my total tax is likely to fall when compared to previous year. Am sure the income tax guys must have a structure in place to check this, (b) is it mandatory that since my income has risen my tax should also rise? If yes, what would you suggest.

I checked with our CA and he says not too worry..if you are caught then everyone else is and he is confident that this will not be tracked.

What would you suggest - thanks for all your help, in advance

AI Summary

Ex-ABC Employee's Tax Liability Drops After Joining DEF, Using Reimbursements and Falsified Bills to Reduce Tax Payment An individual, previously employed at company ABC, paid a fixed income tax of 70k for 2013-14 due to a straightforward tax structure. After joining company DEF, they submit various bills, some falsified, for reimbursement, significantly reducing their tax liability. Concerned about potential consequences of a decreased tax payment despite increased income, they consulted a Chartered Accountant who reassured them that such practices are unlikely to be tracked. A forum respondent explained that the new company's reimbursement of expenses as business expenditures is the reason for the reduced tax.