Looking for something?
none none
I-T department to track high value transactions
Posted on  
January 24, 2012
 
Author  

View quick summary Due to the slowdown in economic growth, corporate earnings have decreased. This has impacted the tax collection; the April-December period saw a net growth in direct tax earnings by a miniscule 8%. So, to step up tax earnings, the I-T department has decided to track high value transactions, with a focus on those above Rs 10 lakhs.


The Department can ask the party to explain the source of money, verify the accounting recorded for the transaction in the ITR and furnish PAN card details. Transactions between persons who are not income tax assessees or those who didn’t reveal their PAN while entering the transaction will be brought under the scanner.


M.C. Joshi, Chairman, Central Board of Direct Taxes clarified that the focus of the drive will be on bigger assessees and on companies doing financially well. This drive will only take recorded transactions into account. Measures that must be taken to target unaccounted transactions still remains an open question.


Defaulters may have to cough up almost 300% of the unpaid tax levy and if the case demands, prosecution. Experts believe that the drive can bring to light the trail of how illegal funds enter the system.

About the author
none
Sudhir Kaushik has been a practicing tax consultant for the last 17 years. He is a Fellow Chartered Accountant and conducts seminars in large companies to help salaried employees with income tax and investment queries. Sudhir brings domain knowledge of income tax laws and their compliance difficulties faced by individuals. He is the author of Income Tax Handbook For Salaried Employees for smart financial planning and investments for salaried people. He enjoys an excellent reputation and has a strong network in the corporate sector and public sector undertakings.
Related posts
NGOs receive shocks from tax notices

View quick summary Certain Non-Government Organisations (NGOs) have received notices from the Income Tax department. Several notices not only demand taxes to be paid but ...

Tax evasion checklist: Taking benefit of basic exemption limit twice in a year

When shifting jobs, the new employer assumes that you didn't earn any income in the previous months. Tax liability will be calculated according to ...

Tax evasion checklist: Withdrawing PF within five years of joining a company

When shifting to a new company, the PF account under the previous company can be transferred to the new company. This way, the PF amount ...

Tax evasion checklist: Both spouses claiming tax benefit on same expenses

Be it school fees, medical insurance, etc., only the member making payment can avail the tax benefits offered. Both the spouses cannot claim the same ...

Tax evasion checklist: Not paying wealth tax on second house

Owning a vacant second home can attract wealth tax. The tax will be charged on the notional rental income of the property, keeping the market ...