Post demonetization, the IT (Income Tax) department has decided to take action against more than 80,000 person whose cash deposits didn’t match their income profile. In November last year, Central Board of Direct Taxes (CBDT) Chairman Sushil Chandra cleared his intentions that the taxman would be ‘chasing’ and scrutinizing the financial accounts of the 87,000 cases of people who had made a high amount of deposits after the announcement of demonetization but failed to file the returns.
On Thursday, the department gave the exact count of the people to whom notices were sent and the people who had filed the returns after acknowledging the notices. Out of this 3 lakh were issued notices, of which 2.1 lakh have deposited unaccounted tax. The Chairman mentioned :
“Around 3 lakh notices were sent to persons who did not file returns post the demonetisation [assessment year 2017-18]. These are statutory notices. About 2.25 lakh people filed their returns thereafter“.
He further mentioned that the department is still working over the rest of 87,000 taxpayers. The IT department has issued the notices to them under section 142 (1) of the Income- Tax Act. SMS’s and e-mails have also been sent to these people.
The Working of Officials.
CBDT has given authority to IT officials to scrutinize the accounts of taxpayers who were found guilty of not filling the returns. As per the CBDT notifications, the officials can send notice to these people to collect the information regarding their cash flow and details of their transactions. The notification stated,”Such notices would be issued by the concerned I-T official after a careful appraisal of information at his disposal so that maximum possible additional information can be culled out. Further, a detailed analysis of past income tax returns, if available, should also be made to form an opinion regarding nature of transactions related to demonetization“.
Nangia Advisors, Managing Partner Rakesh Nangia mentioned to a newspaper : “These taxpayers are now on the wider radar of the I-T department as the tax officers have been authorised to gather maximum information about them and scrutinise the total income on the basis of such information“.
The Increase in Returns.
The Chairman, Chandra also mentioned that post demonetization exercise, the IT department has successfully brought 86 lakh new returns to the tax net without using any kind of intrusive methods. Steps are taken at his part to inform everyone about their tax deposits, official notices have been sent to different regions to take all the necessary steps in the concerned matter “We are following Tax Deducted at Source payments and asking every deductor to ensure that they deduct these taxes on time and deposit with the department…prosecutions (for not depositing TDS) are also being filed. Similarly, we are also chasing advance taxpayers and we are intimating them that please deposit your tax,” he mentioned.
News source: Financial express and Moneycontrol.com