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Prosecution for Concealing Income & Measures for Checking Out-Flow of Black Money

Income Tax Department receives information from various sources including from foreign governments under the Double Taxation Avoidance Agreement (DTAA). Whenever such information is received, it is investigated and any untaxed amount is assessed and brought to taxation. Prosecution proceedings for concealment are initiated in appropriate cases.

Prosecution for Concealing Income

Income Tax Department receives information from various sources including from foreign governments under the Double Taxation Avoidance Agreement (DTAA). Whenever such information is received, it is investigated and any untaxed amount is assessed and brought to taxation. Prosecution proceedings for concealment are initiated in appropriate cases.

The information received is covered by the confidentiality clause under the DTAAs and can only be used for the tax purposes specified therein. Thus, the contents of the information received under DTAA cannot be disclosed to persons other than those involved in the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals in relation to, the taxes covered by the Agreement.

This information was given by the Minister of State for Finance, Shri S.S. Palanimanickam in written reply to a question in the Rajya Sabha today.

Measures for Checking Out-Flow of Black Money

            The Income Tax Department takes several punitive and deterrent steps to unearth unaccounted money and curb tax evasion.  These include scrutiny of tax returns; surveys, search and seizure actions; imposition of penalty and launching of prosecution in appropriate cases.  Information technology is used in a systematic way for collection and collation of information to take anti-evasion action against tax evaders.

The Government has also framed a comprehensive five-pronged strategy in order to bring back the country’s money illegally stashed abroad.  The strategy comprises of:

(i)     Joining the global crusade against ‘black money’;

(ii)   Creating an appropriate legislative framework;

(iii) Setting up institutions for dealing with Illicit Funds;

(iv) Developing systems for implementation; and

(v)   Imparting skills to the manpower for effective action.

This information was given by the Minister of State for Finance, Shri S.S. Palanimanickam in written reply to a question in the Rajya  Sabha today.

Categories: Income Tax
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