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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.

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25 Comments

  1. Om says:

    I want to inform that near my area one person has sold property in crores has not paid tax, I want to get reward how to inform income tax

  2. Anantha Raj. P says:

    I want to give information about some people near my area area . income people who earn lakes of rupees in a month but fail to pay tax to Govt. They are water mafia. They have lots of apartments.

  3. Hardik mehta says:

    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.

    Hardik mehta -: 09925077034

  4. Ram Kishore 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 9414779926 Ram

  5. Naveen says:

    HI Sir,

    If i give u the information about black money. So how much reward i would get. send your necessary information in my mail box. I would provide u some black lister names.

  6. sybash says:

    Sir

    I m hving lot of information about binami assets, viasion of vat, cst, excise, and i.t and let me know how to proceed all of them are in the satate of telangana and andhra pradesh.

  7. SK Aggarwal says:

    Dear Sir
    I have written documents of tax evasion of more than Rs.30 Crore of one company registered in Delhi.
    Pls guide me where and how to report to get Reward.
    Regards
    Pls contact me on-09968255876

  8. nancy says:

    provide details of benami assets, bogus share capital.bogus exp and purchase booked of which party,kacha record where found of which type, under or over invoice, service tax and excise evasion and how.list of customer and supplier to whom bill issued without giving goods or vice versa, cash and jewelary whr found and which extent, or as u think better to caught him.mail at dgitdelhi@gmail.com

  9. nancy says:

    details of benami assets, bogus share capital.bogus exp and purchase booked of which party,kacha record where found of which type, under or over invoice, service tax and excise evasion and how.list of customer and supplier to whom bill issued without giving goods or vice versa, cash and jewelary whr found and which extent, or as u think better to caught him.mail at dgitdelhi@gmail.com

  10. nancy says:

    details of benami assets, bogus share capital.bogus exp and purchase booked of which party,kacha record where found of which type, under or over invoice, service tax and excise evasion and how.list of customer and supplier to whom bill issued without giving goods or vice versa, cash and jewelary whr found and which extent, or as u think better to caught him

  11. sitaram says:

    dear.sir,
    i.want.to.know.that.how.much.rewards.sanction.to.the.informer.by.the.income.tax.department.in.india.and.the.percentage.on.which.amount.they.calculate.rewards.amount.either.on.recovered.tax.or.on.penalty.i.was.working.as.a.senior.accounting.with.one.of.the.builder
    pls.guide
    my.contact-7779027541
    siraram

  12. 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

  13. 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

  14. 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

  15. 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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