 "CBDT to keep close tabs on IVF clinics, hotels, others to add new filers")
The Central Board of Direct Taxes (CBDT) is aiming at a rise of 10 per cent in new filers and decided to keep close tabs on transactions done at in-vitro fertilisation (IVF) clinics, medical colleges providing admission under non-resident Indians (NRI) quota, hospitals, hotels, banquets and retailers of designer clothing, watches, and luxury brands, The Times of India (TOI) reported on Thursday.
According to the annual action plan circulated to officers, there is widespread violation of the rule mandating reporting of transactions of over Rs 2 lakh. Compliance with the requirement to provide a PAN card is also low. From the tax department's perspective, there is inadequate matching of these transactions with the returns filed by individuals. This has been identified as an area of concern, and officials have been instructed to carry out the exercise in a subtle manner.
In multiple cases, tax authorities have also found that a huge number of cash transactions have also taken place, resulting in the data not being reported or captured by luxury goods or watch stores, ET quoted finance ministry sources as saying. In 2022, surveys at some major watch retailers were carried out by the I-T department, which showed evidence of irregularities.
The income tax department has been focusing on high-value transactions for several years and sending out notices to those whose annual returns do not tally with their spending. However, the I-T department has refused to provide any data on the success that it has achieved in obtaining additional revenue. In the financial year 2022-23 (FY23), some 780 million returns were filed, an increase of 6.8 per cent over the 730 million returns filed in FY22.
In FY23, the department has instructed its field officers to increase the number of new filers. The target has been fixed at 10 per cent, which is lower than the 10.6 per cent last year, considering the base effect and buoyancy.