Press Information Bureau
Government of India
Ministry of Finance
12-May-2015
Tracking of High Value Transactions by Income Tax Department; Additional Tax of Rs. 4733.61 Crore Collected and 30,68,662 New Returns Filed due to Non-Filer Monitoring System (NMS)
During the year 2013, 2014 and 2015 (up to 31.3.2015), Income Tax Department has through its Non-filer Monitoring System (NMS) identified 12.9 lakh, 22.09 lakh and 44.09 lakh cases respectively, as non-filers of return, though having potential tax liabilities. As a result of the exercise, 30,68,662 new returns have been filed and additional tax of Rs. 4733.61 crore has been collected in the year 2013, 2014 and up to 31.3.2015 in the year 2015. Further follow up action is undeway and similar exercise is also planned to be undertaken in the current financial year.
While identifying non-filers of return through NMS, the Income Tax Department analyses and assimilates all in-house information as well as transactional data received from third-party including Annual Information Return (AIR), Tax Deduction at Source (TDS) and Tax Collection at Source (TCS) statements, Central Information Bureau (CIB) data etc, to isolate such persons/entities who have undertaken high value financial transactions but have not filed return. A total of 79.08 lakh such non-filers have been identified since implementation of NMS in 2013.
This was stated by Shri Jayant Sinha, Minister of State in Ministry of Finance in written reply to a question in the Rajya Sabha today.
The building industry is the biggest tax evaders in India.
For no bills / purchase of sand, cement, blue metal etc. with no bills or from non pan suppliers,a compulsory tax deduction(tax collection) from the builders and contractors at say 5% to 10% as is made in the case of payments under sec. 194 C to I.
Bank accounts of Purchasers of Buildings and flat above Rs.25 lakhs to be scrutinised since extra cash payment is the norm in the business.
MRP should be published by all builders for each flat / building and not rate per Sq. ft., which includes and excludes various facilities and misleads the gullible buyers.
Informers should be mobilized for catching the black money transactions.
Govt should also make out some scheme , where by samll Tax consultant/ pre qualified( not fully qualified CA ) work as Income Tax practicenor encouraged to help & pay /disclose clear income & pay tax – govt should give some benefit to them by way of reward/commission for making S/A tax form small traders/businessman etc.
Indirectly revenue to govt may increase.
Its very interesting that government is very serious in regard of widen more assessee. Sir, if you are serious on the matter, there are so many areas where new assessee can be find out.
Payment made by builder to contractors are fictitious.TDS is recovered from them by deducting from actual labour payments.contractors do not file return for fear of IT department.Builder saves by inflating the expenditure for building and showing no profit in the project.Builders tax slab goes down.After registering semi finished flat extra works on contract basis are shown only on paper.often these so called extra works are almost 50% of registered consideration.Housing finance is available for these fictitious extra work.Through this route white money of financer is becoming black money in construction industry
interest paid by bankers /financial/coop societies/any public sector cosy on deposits(from diff accts) mandatory reporting with pan/tan numbers to income tax dept will fetch so many return filers, tax payment will be increased. Tax authorities will get lot of information from this source.