If someone has recently spent any expensive thing or service or made a big investment, but according to all its declared income, then the income tax department will not scrutinize its accounts.
A senior income tax officer told ET, “Scrutiny will be based on certain information.” That is, it is not that any person’s accounts will be scrutinized only after large transactions occur. The income tax department will answer questions only when it has clear information that it is necessary to do this for the investigation.
This decision was taken in a high-level meeting of the Central Board of Direct Taxes (CBDT) last week. It was convened to review the conditions required for the meeting investigation. Such cases are now taken on computer based criteria, in which transactions exceed more than a fixed limit are covered.
The purpose of the latest step is to ensure that regular taxpayers such as salary enhancements are not inconvenienced and tax authorities may impose their energy on high-risk individuals or entities in whose case the information related to the wrong activity is available.
The department has collected a lot of data under the operation of the clean money run after the note-off. The Department is now trying to find out the efforts of tax evasion through analytics. He has identified 60,000 people, who will now be examined in depth. However, instead of quality, the focus is on the quality so that this entire campaign is more effective.
The focus will now be on limited investigation based on the information available to the department, and not on the common type of investigation. After the fixed procedure, the scrutiny will be replaced in the General Scrutiny. Earlier, senior officials would have to get permission.