Tax Evasion To Get Trickier!
July 12, 2017
The Income Tax Department has started sending text messages to people who have made big investments in the past two years, but have neither paid income tax nor filed I-T returns.
Successive governments have struggled with under-reporting of taxes, seen as a major hurdle in expanding state revenues, as well as with growing undisclosed incomes to avoid taxation. Of the 3.7-crore people who filed tax returns in 2015-16, 99-lakh showed an annual income below the tax exemption limit of ₹ 2.5 lakh. Only 1.72-lakh people said they had earned more than ₹ 50 lakh annually that year. In comparison, more than 1.25 crore-cars were sold over the last five years and two crore people flew abroad in 2015 alone, indicating rampant under-reporting of taxes.
DRIVE AGAINST TAX- EVADERS
The government has launched a fresh drive to catch tax cheats, identifying thousands of people who have made big investments over the past two years but neither paid income tax nor filed I-T returns. The income tax (I-T) department has already sent mobile text messages to about 10,000 people who bought properties worth more than ₹ 50 lakh or invested ₹ 10 lakh and more in mutual funds or to buy cars. The SMS drive was launched mid-June. They have been asked to file I-T returns. To begin with, the focus will be on suspected tax cheats in the four metros and some big cities. No deadline has been fixed for the filing of tax returns by those identified.