Various methods are being adopted by the Income Tax Department to prevent income tax evasion. The department is keeping a close watch on income tax evaders. Recently, the Income Tax Department has issued notices to 40000 people and companies who have not deposited the government after deducting TDS and TCS.
Now a media report has claimed that the Income Tax Department (I-T) is also keeping an eye on your monthly ration, clothes, shoes, haircut, and restaurant expenses. This is to ensure that tax evasion in the country can be curbed and the interests of honest taxpayers are protected.
Government’s new strategy
The government wants to know how much you are spending from the kitchen on your lifestyle every month. The government is constantly taking steps to prevent tax evasion with the help of data analytics. According to the news published in the Economic Times, the department is keeping an eye on people whose bank accounts are being withdrawn very little.
This has raised suspicion in the Income Tax Department. In such cases, the Income Tax Department has sought full details of their monthly expenses from the concerned people. These people will have to account for expenses on flour, rice, spices, oil, gas, shoes, cosmetics, education restaurants, etc. This is an attempt to ensure transparency.
Who is getting notice
According to tax experts, many people have received such notices. However, tax officials say that these notices have been sent only to those people whose income is high. But very little money is withdrawn from their bank. This has raised suspicion that they may have some other source of income, which they have not declared. This is a warning to those who are trying to hide their income.
Information about family members was also sought
In some cases, the Income Tax Department has sought information about the entire family. This includes the names of all the members, their profiles, PAN numbers, and annual income. The department also said that if this information is not given, it can assume a withdrawal of one crore in a year based on estimation. This is an attempt to ensure transparency and accountability.
Why are such notices being sent
Tax officials said that such notices have been sent only to those people whose bank accounts are being withdrawn with very little money. But their lifestyle is very luxurious. This may mean that they have some other source of undeclared income or they are doing cash transactions. This is a warning to those who are involved in tax evasion.
Strictness on foreign income too
In November, the Income Tax Department took action against those who did not declare their foreign income. Notices were sent to such people based on the information received by the department from various countries so that any kind of tax evasion could be prevented. This international cooperation plays an important role in preventing tax evasion.
