Taxman running 'surveys' on premises ahead of declaration date

Under Income Declaration Scheme (IDS) which opened on June 1, black-money holders can come clean by declaring their assets by September 30 and paying tax and penalty of 45 percent thereafter. Those who fail to take advantage of the scheme will have to face stringent actions, including imprisonment.

However, the IT department has been visiting various jewellery and diamond traders well ahead of the September 30 deadline. Speaking to CNBC-TV18 on the status DS Saksena, Principal Chief Commissioner of Income Tax, says these are just 'surveys' based on credible information received about possible tax evasions.Saksena clarified that these visits do not classify as 'raids' as only the business premises have been visited. Raids, typically, mean visiting both office and residential premises of the potential evader, he added.

He said the department will continue to conduct such surveys even after the deadline to verify gathered information on evasions. However, he refrained from putting a figure to the total collections done so far as it is ‘classified’ information and is likely to be put out by the government once the IDS is completed.Below is the verbatim transcript of DS Saksena’s interview on Latha Venkatesh, Sonia Shenoy and Manisha Gupta on CNBC-TV18.Latha: The deadline is September 30 but repeatedly we hear that income tax department is paying visits, you may call them raids, you may call them mere visits but why are these series of visits to diamond traders, jewellery traders before the expiry of the deadline? A: It doesn’t have a direct connection with the deadline but you might be aware that we have got lots and lots of information about a large number of taxpayers. We have been writing letters to them and sometimes they don’t reply, sometimes they don’t receive the letters so we have to visit their premises and ask answers to our questions. Sonia: Is it only jewellery traders that you have visited or surveyed or have you also surveyed a lot of other industries like builders for example and what have your surveys thrown up? A: We have not concentrated on any group of industries, any particular industry. Rather we have gone to places about businesses and trades about whom we have got some credible information. They have thrown up some very interesting facts because we have not visited residences, we have only gone to the office and business premises and in many cases we have found large amount of tax evasion running into tens of crore and in some cases even more than Rs 100 crore. Manisha: As you said these guys already have been informed that they in some sense haven’t paid their whole tax, that is one part of it, second is, is it being done only in Mumbai, Maharashtra or the other states are undertaking it as well and third there also have been reports on how Mumbai perhaps has been divided in various zones and how commissioners have been given specific targets, are the raids being conducted like that? A: No targets are being given and there have not been any raids. There have been surveys. There is a difference between a survey and a raid. A survey is a visit only to the business premises while in a raid we go to the residential premises also. No target is being giving to anyone and this is an all India phenomenon because the income tax department is an all India department. As I have said before, we have got large number of information about a large number of taxpayers across jurisdictions, throughout India. Latha: This applies to both corporate entities as well as individuals? A: Yes, this applies both to corporates and non-corporates because we are not dividing cases on the basis of corporates, non-corporates or any particular trade rather we are going to places to businesses about whom we have got credible information.Latha: You must have begun with some target in mind; we were given to understand that on the Income Declaration Scheme (IDS) the government was expecting something like Rs 40,000 crore which means Rs 1 lakh crore of unaccounted income was what the government was estimating. What have you got so far? A: There are no targets. If you have heard the Prime Minister or the Finance Minister speak about the scheme, they have always said that the aim of the scheme is to clean the balance sheets, it is to have a cleaner business environment because we are now developed nation almost so the practice of having unaccounted transactions, uncounted assets, unaccounted businesses cannot go on. So, the main target of the scheme is not to garner taxes but it is to clear the balance sheets of the businesses in India. Sonia: What happens after the September 30 deadline passes?Latha: Will there be a heightened activity on your part of raiding or surveying? A: After September 30 also we will continue with our surveys because we have to verify all the information which we have and if people are not coming forward voluntarily, we will have to visit them at their business or office premises. Manisha: As you said you have concrete information, you also know corporates and non-corporates as well, is there a number, is there a list that you have that you are working on and how many people fall under this? A: No, as I have said before, there is no target of even surveys, searches or anything. We go to places, to businesses about whom we have definite information and that may vary from jurisdiction to jurisdiction. Latha: You have a final number that has been collected so far? A: No, the information of IDS is classified; it is not to be disclosed. Latha: I am just asking the total amount you have got so far as penalties? A: No, that information is classified, probably when the government will release the figures, but till that time no figures are to be given out.