• Apr
  • 25
  • 2010

It department opined reward of 10% of tax to informers is maximum ceiling

The director-general of Income Tax moved the Supreme Court alleging that the reward paid to an informer for furnishing information about black money of any taxpayer cannot be claimed as a matter of right.

A Bench headed by Justice SH Kapadia issued notice to one such informer, who had sought higher quantum of reward, the chief commissioner of income tax, the Central Board of Direct Taxes (CBDT) chairman, the Centre (through the I-T) and the directorate of Income Tax Vigilance. It also stayed the Kerala High Court’s decision till further orders.

The department has challenged the high court order that held that quantum of reward to the informer was low on the ground that an assumption that 10% of the tax collected to be paid as reward was, in fact, the upper ceiling and the actual amount had to be decided by the committee for sanction.

Additional solicitor general Mohan Parasaran submitted that reward to an informer was not a payment governed by the Income Tax Act, 1961, but an exgratia payment which cannot be claimed as a legal right. He said the high court erred in holding that 10% of the tax collected had to be paid as reward whereas the fact is that this is the upper ceiling and the actual amount was to be decided as per the ‘Guidelines for Reward to Informants 1993’.

Pursuant to MK Surendram’s furnishing information with regard to the undisclosed income of one NP Santhosh Kumar, the department had conducted a search in March 2003 and determined the income at Rs 1.62 crore and tax payable at around Rs 97 lakh.

Thereafter, the local committee for grant of reward to informants had determined the quantum of award payable to the informant at Rs 2.75 lakh.

Both, the director general of foreign trade, Kochi, and the CBDT chairman had rejected Surendram’s demand for enhancement of reward on the ground that the reward, being an exgratia payment, was subject to the guidelines and granted on the absolute discretion of the authority and the same cannot be claimed by anyone as a matter of right.


9 Responses to “It department opined reward of 10% of tax to informers is maximum ceiling”

  1. nancy says:

    DEAR SIR

    IF YOU HAVE ANY INFORMATION ABOUT INCOME TAX,SERVICE TAX AND EXCISE EAVSION
    YOU CAN SEND MAIL AT dgitdelhi@gmail.com . WE ARE NATIONALIST PEOPLE WE SHOULD PROVIDE THE INFORMATION WHO CREATING THE BLACK MONEY WHICH CREAT CORRUPTION

  2. pp says:

    plz contact for info-9425868901

  3. Shuaib Ahmad says:

    dear sir ,
    i can give u more info. about black money.
    plz.guide
    9336369781

  4. PK says:

    contact me for if u can pay reward , huge amount deal is going on.

  5. Madhsudhan says:

    Dear Sir,

    i have lot of information about black money persons were i can give to complaint how much time to take action what are the information required how to caluculate the reward amount either recoverd tax or penalty.

    kindly guide me.
    contact:-9951107366
    Email:- needsenterprisess@gmail.com

  6. sunil nikam says:

    dear sir ,
    i can give u more info. about black money.
    plz.guife

  7. sunil nikam says:

    dear sir
    i also want to give information on black money
    i was working as a sales manager with one of the dealer
    pl guide.

  8. thakar samir s says:

    dear sir
    i also want to give information on black money
    i was working as a senior accountant with one of the builder
    pl guide
    my contect is 9930386006
    samir

  9. Ajay Kohi says:

    Dear Sir,
    I want to know that how much reward sanction to the informer by the service tax Department in India and the percentage on which amount they calculate reward amount either on recovered tax or on penalty.
    Thanks

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