'BCTT effective in tracking tax evasion' | india | Hindustan Times
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'BCTT effective in tracking tax evasion'

The controversial banking cash transaction tax has helped authorities unearth several cases of tax evasion.

india Updated: Jun 08, 2006 14:22 IST

The controversial banking cash transaction tax, which came into effect almost a year back in June 5, 2005, has helped authorities unearth several cases of tax evasion, including the one relating to laundering of around Rs 1,500 crore.

"Enquiries carried out by the Investigation Wing on the basis of BCTT statements have led to unearthing of tax evasion in several cases," Revenue Secretary K M Chandrasekhar has said.

In this connection, he cited an example of huge cash withdrawal in a branch of Federal Bank of India in Chandni Chowk.

Noticed through the BCTT, it led the Department of Income Tax to three entities which were carrying on the business of purchasing demand drafts from traders at a discount and helping the traders avoid both sales tax and income tax.

These entities would deposit the demand drafts in their own accounts and withdraw the cash, he said, adding that they had laundered around Rs 1,500 crore in a period of 18 months.

BCTT has also helped the Department to detect bogus bills accommodation entries, artificial loss claims and dummy firms, Chandrasekhar said.

The monthly BCT statements are filed by the banks before the Director General of Income Tax (Investigation), New Delhi.