Income Tax Scrutiny: The Income Tax Department is now keeping a close watch on those people whose income is good, but who withdraw very little money from their bank accounts. The department has sent notices to such people and asked for full details of their monthly expenses. This includes groceries, clothes, shoes, haircuts, restaurant food, flour, rice, spices, cooking oil, gas cylinders, cosmetics, children’s education, and complete information about family members.
The department aims to find out whether these people are hiding their real income or making large transactions in cash, which can lead to tax evasion. This move is part of the government’s larger plan in which data analytics is being used to prevent tax evasion.
To whom have the notices been sent
Officials say that these notices have not been sent to everyone, but only those people who show huge income in their returns, but there is a huge difference between their life and the amount withdrawn from the bank. In simple words, if someone is living a luxurious lifestyle, eating in expensive restaurants, and wearing good clothes, but withdrawing less money from the bank, then the department suspects that he has some other source of income, which he has not disclosed.
Luxury life, less bank withdrawal
Like that campaign, this time too the focus of the department is on those whose expenses and income seem a bit wrong. An official of the department said that these are not ordinary notices. These are specifically for those who live a luxurious life, but from the bank activity, it seems that they spend very little. In such a situation, the question arises of where is their money coming from.
According to the department, this action is being taken only on selected high-net-worth people, about whom concrete information has been received that they are showing less of their actual income. An official clarified that if there is a balance between your income and expenditure, then there is no need to panic. But if you live a luxurious life and there is almost no withdrawal from the bank, then the department will seek answers from you.
The purpose of this is to ensure that no one can escape tax by hiding their income. Now the Income Tax Department has its eyes on everything from groceries to haircuts.