Moneycontrol
Sep 14, 2017 02:04 PM IST | Source: Moneycontrol.com

Now, cash deposits before demonetisation on taxman's radar

In an effort to increase tax collection and clamp down on tax evasion,the income department has asked for clarifications with regards to cash deposits carried out in FY11, The Economic Times reported.

Now, cash deposits before demonetisation on taxman's radar

The tax department is now scrutinising large cash deposits made before demonetisation last November, making it more difficult for those dealing in black money to escape action.

In an effort to increase tax collection and clamp down on tax evasion,the income department has asked for clarifications with regards to cash deposits carried out in FY11, The Economic Times reported.

Additionally, the authorities have sent notices to homebuyers in cases wherein the declared purchase amount was significantly lower than the standard price of properties in the concerned localities.

To infer the differences, the department has referred to guidance value and previous transactions for real estate in those areas.

If the department finds subsequent replies from the concerned persons to be inadequate, they are likely to issue formal notices and initiate a reassessment procedure, as per the report.

An income tax official told the newspaper that the cases have been categorized as “low-risk” and “high-risk” and the latter would receive attention straightaway.

They authorities are trying to carry out the assessment and due diligence immediately as cases from fiscal 2011 will become “time-barred” soon.

The development comes on the heels of the income tax separtment setting an ambitious target for clearing the backlog of tax disputes, according to its ‘Vision 2020’ document.

Recently, Prime Minister Narendra Modi had expressed concerns over the huge number of litigations involving the tax department.

At the end of FY17, there were around 2.9 lakh appeals pending resolution, while 1.17 lakh appeals were disposed of during the same year. Around 28 percent of the pending appeals had been filed prior to March 2015.

The I-T has set a target to clear pending appeals (filed prior to April 2017) for a sum above Rs 50 crore by December 2017.
Sections
Follow us on
Available On