Tax raids increase as govt launches black money disclosure schemes
Taxmen seized 55% more cash and jewellery during April-October 2016, compared to the same period last year, while income-tax raids increased by 46% during the period, a top officer in the tax department told HT on the condition of anonymity .business Updated: Dec 01, 2016 11:12 IST
Taxmen seized 55% more cash and jewellery during April-October 2016, compared to the same period last year, while income-tax raids increased by 46% during the period, a top officer in the tax department told HT on the condition of anonymity .
The result: R7,700 crore worth of black money has been unearthed since April, against R5,030 crore during the whole of 2015-16.
The surge is mainly because of the government’s stepped-up efforts to contain black money, sources said.
“Given the government’s schemes for disclosing black money, the tax department wants more people to use them. Increased vigil will ensure more people opt for the black money disclosure schemes,” said the official quoted above.
Bengaluru tops the list of cities, where black money has been unearthed (R1,852 crore), followed by Chennai with R1798 crore. Manufacturing, real estate, trading and educational institutes top the pecking order of sectors.
As far as entities are concerned, tax searches and seizures at Indiabulls led to the discovery of over R1,500 crore in black money, followed by raids at various firms of the Muthoot Group, which yielded over R1,000 crore.
“R7,700 crore is the amount of black money that we recovered and got people to admit to generating it. The ‘unadmitted’ black money recovered in the April to October period this year is three times of that,” said the source quoted above.
The tax department raided 172 entities between April and October in 2015, and 252 entities during the same period this year. Around R367 crore worth of cash and jewellery was seized in 2015, which increased to R567 crore in 2016.
“Various initiatives have been taken to crack down on black money. Many more provisions will be further announced,” revenue secretary Hasmukh Adhia had told HT earlier.