Tax sleuths to verify high-value transactions

January 18th, 2012 - 9:11 pm ICT by IANS  

New Delhi, Jan 18 (IANS) The Indian government will run a special drive from Jan 20 to March 20 to verify high-value transactions including investments, deposits and expenditure in a bid to trace tax evaders, the finance ministry said Wednesday.

“The Central Board of Direct Taxes has directed the Income Tax department to launch a special drive, from Jan 20 to March 20, 2012, for verifying high-value transactions from persons who are not assessed to income tax or who have not furnished their PAN while entering into such transactions,” the ministry said in a statement.

The CBDT has issued pro forma for query letters and responses to be issued to the high-value investors, depositors and spenders.

The Income Tax department will seek clarification on the high-value transactions, it said, adding people who have not properly accounted for these transactions will be required to pay due taxes and file the Income Tax return within this financial year.

“For furnishing the information called for, visit to the tax office is not necessary. Information can be sent by speed post or registered post,” it said.

There are penal consequences of not obtaining permanent account number (PAN) or reporting it. For not paying proper taxes, there can be penalty up to 300 percent of the unpaid tax, and also prosecution in some cases, the statement added.

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