Taxman to match declared income with possessions like cars
There are more than 150,000 luxury cars priced upwards of Rs 30 lakh in Delhi alone. But government tax data shows the entire country has just 150,000 people who have declared annual income above Rs 50 lakhbusiness Updated: May 09, 2016 01:45 IST
There are more than 150,000 luxury cars priced upwards of Rs 30 lakh in Delhi alone. But government tax data shows the entire country has just 150,000 people who have declared annual income above Rs 50 lakh.
This is the conundrum facing the income tax department, said a senior official. And to crack it, he added, the taxman will soon start matching your I-T returns with your possessions.
The government has started collecting data from various sources and when this is done and the data has been sifted through, action will begin, the tax official said.
“This drive is a salient feature of the tax department’s agenda to curb under-reporting of tax and expand the taxpayer base in the country.”
As a step in this direction, the government has -- starting January 1 -- made it mandatory to quote the PAN number in transactions of Rs 2 lakh or more. It has also imposed a 1% additional levy on purchase of cars priced above Rs 10 lakh, to be deducted at source.
The new drive will target owners of vehicles already on the road.
The move comes a fortnight before the June 1-September 30 compliance window opens for declaring undisclosed income under the domestic black money bill.
In his budget announcement, finance minister Arun Jaitley had said tax payers could make up for past mistakes by paying tax at 30%, surcharge at 7.5% and a 7.5% penalty, which adds up to 45% of the undisclosed income.
Government reports say use of black money is particularly rampant in real estate, jewellery and high-value goods such as luxury cars and watches.