I-T informers to go on hunger strike for dues
Income tax (I-T) informers in Mumbai have decided to go on indefinite hunger strike from Monday to press for recovery of their reward worth Rs 127 crore. In some cases the reward has accumulated over last 22 years.india Updated: Jun 29, 2009 01:06 IST
Income tax (I-T) informers in Mumbai have decided to go on indefinite hunger strike from Monday to press for recovery of their reward worth Rs 127 crore. In some cases the reward has accumulated over last 22 years.
Five informers would go on hunger strike at Azad Maidan. They have already intimated about their decision to the Finance Ministry and Central Board of Direct Taxes (CBDT) in Delhi which governs the income tax department all over the country.
According to K. Gupta, a 70-year-old informer who is doing the job since last 26 years, the five informers have given information to Mumbai I-T officials in 101 cases which lead to recovery of Rs 1,270 crore in tax.
According to IT laws, informers should have got reward at the rate of 10 per cent of this amount which is still pending.
Gupta alone is waiting for more than Rs 25 crore worth reward which is pending since 1996.
Gl Sharma (52) another informer who has dues worth more than Rs two crore pending since 1987 said that he and others have made representation to the Finance ministry, CBDT and senior I-T authorities in Mumbai on many occasions all these years, but the issue has not yet been sorted out.
As per the procedure, one receiving information, the investigation wing of the I-T department conducts raid on a tax defaulter. After initial investigation and recovery of cash, other valuables and documents, it prepares an appraisal report and hands over the case to the concerned assessing officer.
The assessing officer asks the tax defaulter to submit his income tax returns for previous six years and tax demand is made. After this the reward is given to the informers and also the investigation team members.