The Income Tax department has started a new drive to catch Tax evaders. In order to catch tax evaders and black money hoarders it has started collecting information related to high value transactions of purchase/ sale, investment and other expenditures in the income tax return itself. Further it also collects corresponding information from Banks, financial institutions, mutual funds AMCs and land revenue department and security depositories to cross check the same from the filed tax return of the tax payers.
Today we shall share with you the important nature of transactions which you must disclose in you tax return. As the income tax department may take serious action in case of non disclosure and in case of tax evasion the consequences may involve levy of interest and penalty upto 300% of tax evaded and also launching prosecution.
Income Tax Department collects information about your investments/expenses related to:
As mentioned earlier banks, financial institutions, Mutual Fund Asset Management Companies, land revenue department and security depositories are instructed to furnish the particulars of tax payers falling under any of the above criteria.
As per the press release of the Income tax department, it has information about:
Action taken by the Income Tax department
The Income Tax department has already issued notices to more than 12 lac persons who have not filed their Return or who have not disclosed the above transactions in their return. Department is taking strict action against non filers and tax evaders by way of levy of Interest, penalty and launching prosecution in several cases.
Apart from mandatory levy of interest, Failure to declare your correct income may lead to penalty upto 300% of the evaded tax and you may also face prosecution.
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