Skip to main content

Income-tax department identifies 30,000 cases for scrutiny E-filing of tax returns jumps 21% till August 1

The government will scrutinise 30,000 cases among taxpayers, individual and non-individual, who tried regularising their unaccounted incomes by filing returns in response to the note ban in November last year.
Meanwhile, there has been 21 per cent growth in the online filing of tax returns as of August 1, with 23.3 million individuals filing returns for the financial year 2016-17, against 19.2 million in the corresponding period last year, when growth was 10 per cent. 
The jump could be owing to demonetisation, the introduction of the goods and services tax (GST), and other back money-deterrent measures announced by the government.
“We have selected 30,000 cases for partial scrutiny and full scrutiny of entities and individuals who tried to regularise their unaccounted income during demonetisation,” said a senior official in the Central Board of Direct Taxes (CBDT).
The income-tax (I-T) department has identified people who either showed a significant jump in ‘cash in hand’, or filed a return for the first time, reporting a big sum.
“There are many cases whose cash in hand reported in the tax return does not match their income reported in previous years. There are others who filed a return for the first time showing a cash in hand of Rs 10 lakh or Rs 20 lakh. How do you justify that? They will now face scrutiny,” said the official.
There are people who revised their returns for the previous two fiscal years to avoid coming under scrutiny, but have now been identified by the I-T department.
The I-T department has a steep collection target of Rs 9.8 lakh crore, a growth rate of 15.7 per cent, compared to 14.3 per cent in the previous fiscal year. The I-T rate on income between Rs 2.5 lakh and Rs 5 lakh has been cut to 5 per cent from 10 per cent from the current year.   
The strategy includes litigation management, disposing of high-value cases, scaling up searches and seizures, strengthening systems and investigation teams, and tying up with global data mining companies for information gathering.
The last date for filing returns was extended to August 5, and the government on Friday said that all I-T offices would remain open till midnight on Saturday to facilitate return filing.
The advance tax paid by individuals recorded 40 per cent growth in the first quarter of the fiscal year, which could be an aftermath of demonetisation, with more non-corporates recording higher incomes in their books.
After demonetisation, the tax department conducted searches on 900 groups of people up to March this year, resulting in seizures of Rs 900 crore and people admitting to having undisclosed incomes of Rs 7,961 crore. Besides, 8,239 surveys were conducted and they detected undisclosed incomes of Rs 6,745 crore.
In the current fiscal year, the tax department has seized assets worth Rs 103 crore after conducting searches on 102 groups that admitted to undisclosed incomes of Rs 2,670 crore. 
The department has also conducted surveys in 202 cases, leading to a detection of black money of Rs 150 crore.
The government had come up with two income declaration schemes last year, providing an opportunity to black money holders to disclose unaccounted income by paying the tax and penalty.
The Income Declaration Scheme fetched the government close to Rs 12,000 crore in the last fiscal year, and another Rs 10,000 crore from that is expected this year due to the staggered payment option.
The taxman is watching you
They tried to regularise unaccounted income by filing tax returns 
What kind of cases are these? 
Cash in hand reported is significantly higher than the income declared in the previous years
People who filed returns for the first time reported cash in hand of Rs 5 lakh/Rs 10 lakh 
What will be the action taken? 
Notices have been sent by the tax department. If found to be a defaulter, he/she will face a penalty of 50-200% 
Note ban triggers higher returns 
E-filing of returns sees 21% growth up to August 1 at 23.3 million filers, up from 19.2 million filers last year
I-T offices to remain open till midnight today
To facilitate manual filing of I-T returns on August 5, the CBDT has directed necessary arrangements be made for receiving ITRs up to midnight in all its offices
Business Standard, New Delhi, 05 August 2017


Popular posts from this blog

RBI rushes in to prop up falling rupee

RBI rushes in to prop up falling rupee India’s central bank reportedly intervened in the currency markets on Monday to prevent a further slide in the local unit, which breached the 67 mark to a dollar for the first time in 15 months amid a widening trade gap and runaway import bills fuelled by high crude-oil prices. Some state-owned banks were seen selling dollars aggressively, interventions that market dealers attributed to the central bank’s strategy to stem the decline of the Indian rupee against the US currency. The rupee is the worst performing among a dozen Asian monetary units in the past three months. It lost 4.25 per cent to the dollar during the period, show data from Bloomberg. On Monday, the Reserve Bank of India (RBI) is said to have sold about Rs 800 million collectively on the spot and exchange traded futures markets, dealers said. An email sent to RBI remained unanswered until the publication of this report. The currency market has seen such a strong central bank interven…

GST Refund of Rs 20,000 Cr Pending: Exporters’ Body

GST Refund of Rs  20,000 Cr Pending: Exporters’ Body Refund of over Rs 20,000 crore on account of Goods and Services Tax (GST) is pending with the government with more than half the amount stuck as input tax credit, Federation of Indian Export Organisations said on Tuesday. While claims over Rs7,000 crore were cleared in March, the amount was Rs 1,000 crore in April.However, after exporters’ request, the GST council and tax department are organizing a second phase of Special Refund Fortnight starting May 31, which will enable exporters to draw their refunds at a speedy pace. Many exporters have been unable to file the refund of input tax credit due to technical glitches, exports and claim happened in different months. The major challenge lies on ITC refund especially because the process is partly electronic and partly manual which is cumbersome and add to the transaction cost, the exporters’ body said. On IGST, refunds are getting delayed due to airline and shipping companies not submitt…

Shrinking footprints of foreign banks in India

Shrinking footprints of foreign banks in India Foreign banks are increasingly shrinking their presence in India and are also becoming more conservative than private and public sector counterparts. While many of them have sold some of their businesses in India as part of their global strategy, some are trying to keep their core expertise intact. Others are branching out to newer areas to continue business momentum.For example, HSBC and Barclays Bank in India have got out of the retail business, whereas corporate-focused Standard Chartered Bank is now trying to increase its focus on retail “Building a retail franchise is a huge exercise and takes a long time. You cannot afford to lose it,” said Shashank Joshi, Bank of Tokyo-Mitsubishi UFJ’s India head.According to the Reserve Bank of India (RBI) data, foreign banks’ combined loan book shrunk nearly 10 per cent from Rs 3.78 trillion in fiscal 2015-16 to Rs 3.42 trillion last financial year. The banking industry, which includes foreign banks…