With reference to Shrimi Choudhary’s report, “I-T dept uncovers tax evasion worth Rs 38,000 crore” (October 27), it was encouraging to learn that the Income Tax Department has unearthed around 1,000 cases of tax evasion and issued show-cause notices to 147 people for their alleged involvement in trading in the cash segment of the stock market.
The report reveals that the tax evaders used dubious means such as long-term capital gains, allotment of shares under the preference route and even penny stocks.
The credit goes to the revenue department and the Central Board of Direct Taxes (CBDT), which carried out a thorough analysis of the data provided by the Securities and Exchange Board of India (Sebi) pertaining to penny stocks. This indicated that around 2,000 entities had allegedly traded beyond their disclosed income limits.
Further, according to the income tax return statistics released by the CBDT, around 7.8 million new assessees started filing returns between assessment years 2012-13 and 2014-15, pushing up the total number of those who file returns to 39.13 million. This is a positive development.
The government’s Income Declaration Scheme, 2016, with a four-month window, mopped up Rs 65,000 crore in previously undisclosed income. This amnesty scheme offered enough incentives such as taxing the declarants at the same tax rate of 45 per cent applicable to ordinary people, facility of tax payment in three instalments up to September 2017 and no questions being asked about the sources of such income disclosed. Was this preferential treatment to tax evaders justified?
Instead of offering alluring schemes to tax evaders, the I-T Department should refurbish its administrative machinery, techniques to identify grey areas, survey potential/market intelligence in coordination with the Reserve Bank of India, commercial banks, Customs and excise department and the Sebi. The I-T department must also keep tabs on the sports arena and non-banking financial
Also Read
companies, which could be possible tax evasion zones.
Vinayak G Bengaluru Letters can be mailed, faxed or e-mailed to:
Vinayak G Bengaluru Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201 · E-mail: letters@bsmail.in
All letters must have a postal address and telephone number