An inflated phone bill may get you an I-T notice
The Income Tax (I-T) Department may come knocking at your doors if
- Your annual phone bill is higher than your income tax submissions or
- Your passport has multiple visas in the past couple of years.
Department is looking at a different set of parameters to identify tax evaders.
After identifying 1.2 million high-spending non-filers linked to more than 47 million information records, the Income tax department is looking at a different set of parameters to identify more people who have not been paying their dues properly.
- In the first phase only 1.2 million people were identified, based on three main parameters
- They have a PAN card
- Conducted high value transactions
- Did not file their return
- In the next round, notices could be sent based on information from various other parameters (if not in sync with the income declared by a taxpayer or the amount of tax paid by him) such as
- Frequent foreign trips
- Purchase of high-value jewellery
- Doing large-scale property transactions
The department has a lot of information which can be used to catch tax evaders.
- A nodal cell has been set up to capture the response of non-filers of Income tax- dues
- There will be an online monitoring system to ensure follow-up action and track return filing and tax payment of the target segment.
- The tax department gets information about these transactions from sources like the annual information returns, furnished by entities such as banks and financial institutions.
- An inflated phone bill may get you an I-T notice- If your monthly phone bill runs into several thousands, you cannot fall in the category which is exempted from paying tax.
- Some of the transactions currently included under these returns are:
- Sale of purchase of property over Rs 30 lakh
- Credit card payment of over Rs 2 lakh
- Cash deposits aggregating to Rs 10 lakh
- Payment of Rs 5 lakh or more.
Letters issued to non-filers: Pay tax dues or face consequences
- Of 1.2 million identified non-filers, the finance ministry last month issued letters to about 1,05,000 people in three lots of 35,000 each, reminding them to pay their income tax dues or face the consequences.
- About 10,000 people have filed their returns after receiving the letters.
- The letters contained the summary of information of financial transactions, along with customized response sheets.
- The letters were primarily being sent to non-salaried taxpayers who bought land, property, gold, mutual funds, shares or made huge purchases on credit card but did not file their return.
Source: Business Standard