The income tax department has asked its officials to use ‘best judgement’ assessment on 87,000 taxpayers who deposited large amounts of money into their bank accounts during demonetisation but refused to respond to the queries made by the department on the sources of funds, reports Times of India (TOI).
Under Section 142 (1) of the Income Tax Act, Central Board of Direct Taxes (CBDT) had issued notices to around 3 lakh individuals after demonetisation asking them to furnish details regarding case deposits and Income Tax Returns for 2016-17. However, 87,000 taxpayers who made deposits of over Rs 2 lakh did not reply to the department.
In light of this, the investigation division of CBDT will proactively share updated details of these assessees’ addresses, transaction details and bank account information with the assessing officers. Using this data, officers can verify the cash deposit information and can issue further assessment orders.
Assessing officers also have been asked to do a detailed analysis of assessees’ past I-T returns to check the nature of transactions during demonetisation.
Cast A Wider Net
“These taxpayers are now on the wider radar of the I-T department as the tax officers have been authorised to gather maximum information about them and scrutinise the total income on the basis of such information. In other words, the I-T officer is authorised to assesses the total income of such taxpayers to the best of his judgement,” said Nangia Advisors managing partner Rakesh Nangia to TOI.
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.