The income tax (I-T) department is preparing a list of tax payers against whom it can initiate proceedings for non-filing of returns and non-paying of tax. The last date for filing returns was March 31.
The department’s move comes after the union finance ministry’s decision to push for revenue reforms, which include improving tax recovery record this year.
Income Tax Act provides for prosecuting a wilful defaulter
The department will invoke provisions of the Income Tax Act, 1961, which provides for prosecuting a wilful defaulter. The Act provides for rigorous imprisonment and fine.
CBDT asks dept offices to identify potential cases for prosecution
The Central Board of Direct Taxes (CBDT) has asked department offices across the country to identify potential cases for prosecution. The assessing officers have been asked to view the information and take necessary action if the condition of Act provisions is fulfilled.
“The list of assesses who didn’t pay tax is long. There are people who have filed returns but have not deposited (income) tax saying that they don’t have money to pay. Many of such people are into real estate in Indore region,” a department official said wishing anonymity.
The department had taken similar steps on CBDT’s directives earlier when it had identified potential cases for prosecution under Section 276CC (prosecution for non-filing of return of income).
The tax payers who had neither filed returns nor responded to tax claims raised by department were identified as potential prosecution cases under Section 276CC of Income Tax Act.