Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Open DEMAT Account with in 24 Hrs and start investing now!
« Top Headlines »
Open DEMAT Account in 24 hrs
 March 31 deadline is getting near. How to save income tax with tax loss harvesting?
 45-day MSME payment rule: Impact and details of Section 43B(h) explained
 Small savings schemes that offer tax benefits of up to Rs 1.5 lakh under section 80C
 RE-OPENING OF CORRECTION WINDOW FOR MAY 2024 CA EXAMINATIONS
 Powerful Upgrades, Tally 12+1 months renewal Plan and Connected Services for your growing Business - March 2024
 How innovative solutions can help fix the Sec 43B conundrum for MSMEs
 Income Tax dept asks many individuals to explain high value transactions of FY20-21 as Updated ITR deadline nears
 Release Notes for TallyPrime and TallyPrime Edit Log Release 4.1 | What s New!
 Deadline to file updated ITR FY20-21 ends on March 31: Details on additional tax
 4 tax-planning mistakes to avoid this season
 ITR 2024: Here are 8 ways by which senior citizens can save on taxes this year

Black to white: evaders' ways won't wash with I-T anymore
July, 10th 2006

Its a high alert for those changing the colour of the money from black to white, illegally. Taxmen are on the prowl and have already caught such a transaction valuing about Rs 100 crore recently. Popularly known as accommodation entry, the Income Tax (I-T) department is going the whole hog to catch the culprits and would keep strong track of large sales of jewellery.

These transactions are usually made to convert black money into white. The modus operandi goes something like this. An individual uses his black money to make cash payment. In exchange, he obtains a cheque of equivalent amount from the other party.

The first party then shows a fictitious sale, for instance, the sale of family jewellery to account for the receipt of the cheques in his bank statement. The reverse transactions occur when people give out loans and take the sum back as cash.

The tax department is now training its guns on such transactions, as they seem to be an ever-popular means to evade tax. Following this cache of Rs 100 crore, the intelligence wing of the department is keeping a close tab on other such transactions. The department, accordingly, plans to follow up large cases of jewellery sales and track both parties carrying out the transaction. It is also likely to look into returns which show a sudden loan, where too both the parties would be examined.

In addition, it would also closely scrutinise I-T returns where there have been huge claims for exemption from capital gains tax or a sudden rise in investments by the non-salaried. In fact, at the annual conference of the chief commissioners and directors general of I-T department last week, a lot of emphasis was given to tightening of scrutiny norms especially for high-income earners.

The step is basically part of larger exercise to identify new measures to increase tax collections along with broadening the base. Scrutiny is being deepened further, as clubbed with the third party information, it would help the department in plugging various loop holes while enhancing tax collections.

The Annual Information Return has already thrown in heaps of information which the department will use to track down tax evaders. Giving a warning of sorts, finance minister P Chidambaram also delivered a very crisp and clear message at the conference - pay taxes, file your return or the department will get you sooner or later.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2024 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting