The Central Board of Direct Taxation (CBDT) on Thursday said that only 0.35 percent of the Income Tax returns, filed last year will be scrutinised.
Sushil Chandra, the chairman of CBDT said, “We are only picking 0.35 percent cases for scrutiny. Simultaneously we are making our enforcement unit stronger so that the cases of tax evaders will be dealt with severely.”
His statement comes days after the IT Department detected undisclosed income worth Rs. 125 Crore under the Foreign Account Tax Compliance Act (FATCA).
Speaking about it, Chandra said that action will be taken against the offenders under Black Money Act.
“We have got around Rs 124 crore under FATCA. Action will be taken against them (tax offenders). If it is found that they have not disclosed their income in their regular returns. Action in the black money tax (law) will be taken against them,” he added.
He further said that CBDT had sent notices to everyone who filed their returns this year and also taken into account their economic activities.
“We have sent notices to everyone who filed their returns and we have taken into account the economic activities which they have undertaken so that even if they don’t file returns, we will have to pass assessment order with that,” the CBDT chief added.
“We issued 3.09 lakh notices last year on the basis of demonetisation data and many persons have filed returns into that,” Chandra added.
The USA enacted law FATCA in 2010 with the objective of tackling tax evasion through obtaining information in respect of offshore financial accounts maintained by USA residents and citizens.
The provisions of FATCA essentially provide for 30 percent withholding tax on US source payments made to Foreign Institutions unless they enter into an agreement with the Internal Revenue Service to provide information about accounts held with them by USA persons or entities (firms/companies/trusts) controlled by US nationals.(Minimal edits applied, story generated from syndicated ANI feed)