Income Tax

Action taken against tax evasion, including evasion of tax on capital gains by the Government in the recent past both on policy and enforcement level

Action taken against tax evasion, including evasion of tax on capital gains
Ministry of Finance Press release dated 06/05/2016
Appropriate action against tax evasion, including evasion of tax on capital gains, is an on-going process. Whenever such cases are noticed by the Income Tax Department, appropriate action is taken under direct taxes law. Such action is not dependent upon a demand to be made to the Government. The actions under the Income-tax Act, 1961 include searches, surveys, enquiries, assessment of income, levy of tax, interest & penalty and filing of prosecution complaints before criminal courts, wherever applicable. Such tax, interest and penalty form part of the total liability of each assessee and is enforced accordingly. Therefore, separate data for liability on account of tax, interest and penalty attributable to evasion of tax on capital gains is not maintained. Further, disclosure of information regarding specific taxpayers is prohibited except as provided in section 138 of the Income-tax Act, 1961.

Periodic review of the Government’s mechanism for taking corrective steps is an on-going process. In recent times, the Government has taken several effective measures, both by way of policy-level initiatives as well as through more effective enforcement action on the ground, to tackle tax evasion. These steps include putting in place robust legislative and administrative frameworks, systems and processes with due focus on capacity building and integration of information and its mining through increasing use of information technology.

Major initiatives taken by the Government in the recent past include –

(i) Constitution of the Special Investigation Team (SIT) on Black Money under Chairmanship and Vice-Chairmanship of two former Judges of Hon’ble Supreme Court,
(ii) Introduction of the Benami Transactions (Prohibition) Amendment Bill, 2015 to amend the Benami Transactions (Prohibition) Act, 1988 with a view to, inter alia, enable confiscation of Benami property and provide for prosecution,
(iii) While focusing upon non-intrusive measures, due emphasis on enforcement measures in high impact cases with a view to prosecute the offenders at the earliest possible for credible deterrence against tax evasion.
(iv) Initiation of the information technology based ‘Project Insight’ by the Income Tax Department for strengthening the non-intrusive information driven approach for improving tax compliance and effective utilization of available information,
(v) Legislative measures including amendments in the Income-tax Act, 1961.

This was stated by Shri Jayant Sinha, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.

*****
Share

Recent Posts

  • Empanelment

CGPDTM invites applications for hiring contractual manpower and Young Professionals

CGPDTM invites applications for hiring contractual manpower and Young Professionals The Controller General Patents, Designs & Trade Marks has invited…

7 minutes ago
  • Income Tax

Sundry creditors can’t be treated income u/s 41(1) because recovery barred by limitation

Sundry creditors outstanding in books can’t be treated income u/s 41(1) merely because recovery was barred by limitation - ITAT…

4 hours ago
  • Income Tax

Exemption u/s 11 allowed for ITR filed u/s 139 not u/s 139(1) as per CBDT Circular

For claiming exemption u/s 11, assessee is required to furnish return of income within time allowed u/s 139 and not…

8 hours ago
  • Income Tax

FAQs on amendment proposed to rates of TCS u/s 394(1) of the Income-tax Act 2025

FAQs on amendment proposed to rates of Tax Collection at Source u/s 394(1) of the Income-tax Act, 2025  Income Tax…

10 hours ago
  • Income Tax

FAQs on amendment proposed in Updated return provisions u/s 263(6) of Income Tax Act 2025

FAQs on amendment proposed in Updated return provisions under section 263(6) of Income Tax Act 2025 by Budget 2026-27 Income…

11 hours ago
  • Income Tax

FAQs on Amendments proposed in TDS and related provisions by Budget 2026-27

Income Tax Department has issued a FAQ on amendments proposed to provisions related to Tax Deduction at Source (TDS) and…

13 hours ago