Income Tax scrutiny will be tougher, Department increasing the number of Assessing officers who will scrutinise the cases
Jan 25, 2010 Income Tax
Income tax evaders are being pushed into an increasingly tight corner – the I-T department is planning restructuring that will help assessing officers spend more time on an assessee than they do now. Currently in Mumbai, an assessing officer, the individual who actually detects tax evasion after going through the assessee’s files, scrutinises an average of 400 cases a year.
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Tags: assessing officers, assessment work, CBDT, direct taxes, finance ministry, Income Tax, restructuring, Scrutiny, tax evaders, Tax Evasion, taxpayers
IT department investigating tax evasion by showing bogus investment losses, May take action against chartered accountants
Jan 2, 2010 Income Tax
Income tax department in the past has stumbled up on many strange things, but nothing as strange as a company exclusively providing bogus stock contract notes to evade taxes, a trail that may lead to it knocking on the doors of many auditors. The Mumbai I-T department estimates that around Rs 1,000 crore of taxes may have been evaded by producing these bogus investment losses, and it now knows the beneficiaries too, a senior department official in the know of things said.
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Tags: bogus bills, chartered accountants, contract notes, duty free shops, Income Tax raids, infrastructure companies, investment losses, long term capital, long term capital gains, preventive measure, real estate developers, stock contract, tax evaders, Tax Evasion
CBEC proposed to launch third party information system (TPIS) to tackle service tax evasion
Nov 10, 2009 Service Tax
Last Year, The CBEC, had planned a Third Party Information System (TPIS), a third party information model for excise duty. Now CBEC requires to reproduce the trials with service tax. As per board, it is a very effective and non-intrusive set up to obtain all apposite data to trap the tax evaders.
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Tags: banking and financial services, CBDT, CBEC, credit card issuers, credit card transaction, department projects, Excise Duty, information model, paying taxes, Registrar of Companies, regulatory authority, stock exchanges, tax evaders, Tax Evasion, tpis, trai, transport operators
Computation of undisclosed income in case no incriminating document was found during search
Oct 27, 2009 Income Tax Case Laws
SUMMARY OF CASE LAW
As long as there is an evidence to the undisclosed income of the assessee, that would be sufficient to clothe the Assessing Officer with the powers to add to such evidence any further material or information that may pertinent or necessary to reach a logical conclusion but there has to be a certain and specific nexus between the evidence found as a result of search and income proposed to be assessed in the block assessment.
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Tags: assets, black money, case law, finality, incomes, insertion, legal battles, new evidence, nexus, requisition, search cases, tax evaders, time search
Swiss bank may share detail of tax evaders with India
Sep 5, 2009 Income Tax
India and Switzerland will soon start negotiations to enlarge the scope of their bilateral double taxation treaty to allow sharing of details of bank accounts of people accused of tax evasion, visiting Swiss Vice-President and Minister of Economic Affairs Doris Leuthard said on Thursday.
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Tags: bank account details, banking secrecy, doris leuthard, double taxation treaty, indian citizens, Swiss Bank, swiss minister, tax evaders, Tax Evasion, treaties, ubs, world trade organisation
No VDIS for tax evaders : Finance Minister
Jul 14, 2009 Income Tax
Government has no plans to bring a new amnesty scheme for tax evaders and wants to amend the Indo-Mauritius tax treaty to curb its abuse by companies, the Rajya Sabha was informed on Tuesday.
VDS schemes in the past offered amnesty to people declaring black money and paying tax. But VDS schemes cannot be hugely successful unless the rate of tax under the amnesty is lower than the prevailing income tax rates, he said.
This policy has been criticised as it amounted to penalising honest tax payers by asking them to pay tax at higher rates.
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Tags: amnesty scheme, black money, disclosure system, foreign institutional investors, Income Tax Rates, offshore firms, pranab mukherjee, swiss authorities, swiss banks, system finance, tax avoidance, tax competition, tax evaders, Tax Treaty, voluntary disclosure
IT dept. in delhi recovered 860 Crore in search, seizure and survey
May 21, 2009 Income Tax
Search and seizure operations by the revenue authorities have forced tax evaders in the national capital to cave in and admit that they owe the government more than Rs 860 crore (Rs 8.6 billion) for the last fiscal. According to an official report of the department, taxmen carried out search, seizure and survey operations in nearly 80 cases, including 30 major ones.The department also seized jewellery worth Rs 12.93 crore (Rs 129.3 million) and confiscated Rs 27.77 crore (Rs 277.7 million) in cash from the offices and premises of individual and corporate taxpayers.”The I-T department, in the last fiscal, also made the largest cash haul of Rs 14 crore (Rs 140 million) from a single survey on a prominent gutka manufacturer of northern India,” an official source said.
Those covered by these operations include real estate firms, infrastructure leasing and building companies, pan masala outfits and the retail business.The department unearthed evaded tax of Rs 705 crore (Rs 7.05 billion) during operations on residential premises, while they stumbled on Rs 154 crore (Rs 1.54 billion) in surveys at offices and corporate headquarters.
The report also mentioned that the searches were carried out in the NCR, Uttar Pradesh, Maharashtra and Himachal Pradesh among others, the report said.
Tags: department, india, infrastructure, PAN, pan masala, real estate firms, revenue authorities, Search, search and seizure, seizure, Survey, surveys, tax evaders
Sales tax hounds comb Mumbai for Tax evaders
Feb 21, 2009 MVAT
The Department of Sales Tax has issued 1 lakh notices to traders in the last two months for tax evasion. It has also filed 431 FIRs against them for not filing returns. Raids, surveys and business audits have been further intensified.
Sources said that hundred of crores of bogus bills and hawala transactions have been unearthed by the department while spreading its dragnet for tax evaders.
Raids on retailers
Every day two raids are being undertaken and tax inspectors are combing the whole city systematically for defaulters. Raids have also been carried out on large retailers, sources said.
Filing VAT returns is voluntary, however in October 2007, the department realised that 30 per cent of VAT assessees had not filed their returns and 40 per cent had filed delayed returns for financial year 2007-08.
After unearthing these facts, the department has intensified its recovery .
Depending on the tax liability, VAT filings are done every 30, 90, 180 and 365 days.
Two streets a week
The Department has also found 2,000 unregistered shops and dealers since the beginning of year.
It has gone about the task by comparing the data available with the Shops and Establishment Department of Municipal Corporation of Greater Mumbai with its own data. Per week two streets are being covered, sources said.
Tags: business audits, CST, department, MVAT, raid, Sales Tax, surveys, tax, tax evaders, Tax Evasion, tax inspectors