Income Tax Evasion: Inputs Sought
Yesterday, the Ministry of Finance announced that the income tax officials carried out a search operation at a leading film production house with location in Mumbai, Pune, Delhi and Hyderabad and the company officials failed to explain a discrepancy of 300 crores where the actual box office collections differ from what has been reported.
With this post we would like to seek your very specific inputs based on experiences and observations as to how income tax evasion is currently taking place by individuals and businesses in India and what should be done.
Once we have enough inputs, we will compile the same and escalate to CBDT for their action. We all know that if evaders are caught the tax increases and burden would be lower on the honest tax paying citizens of the nation.
We look forward to your inputs! more
The middle class or even the upper class working professionals do not have that kind of money in cash. Its mostly the government officials, politicians and business class who can generate cash income to do this. Since they would not want to incriminate themselves, they will simply postpone the issue until its forgotten and therefore, this problem will never go away. Black money keeps changing forms, and now its assets rather than hard cash that changes hands. Examples are shares in unlisted companies and donations to trusts that usually are not public. more
,, 25-30% Black Money Generated has been spent on Luxuries of Family since there is no Check ,, About 30% of Black Money Generated is invested in Movable and immovable Properties since there is no Value Check/ Confirmation ,, Black Money Generated is safe in the form of Wealth since there is no Wealth Tax ,, All the Black Money is Generated with (1) Cash Transactions (2) Undervaluing Assets Purchased (3) Using Binamy Names for Registration (4) Managing Properties with unregistered GPAs ( General Power of Attorneys ) And irrevocable Agreement of Sale with Possession though unregistered ,, Holding plenty Cash since Cash Transactions are not Limited to Rs.2,000/- for use in unaccounted EXPENDITURE / UNDERVALUATED PROPERTIES. more
how do we know what has been found unless the search/ raid operation is recorded on a video camera and the entire video is released to the public. more
All vigilant departments of the government, be it the municipalities, the police, the ED, etc. are lax about people committing frauds and scams and hence this issue is being swept under the carpet. For instance, the ED should check all transactions pertaining to property deals. You will find that more than 60% have some skeletons in their cupboards. Let the ED from each major city zero in on all property deals from 2019 as that was the period when prices were high. You will see how much tax has not been paid. more
2018 to 2021 huge Black Money was turned out. more
Why Input from the General Public is required? All scholars selected through arduous selection process of Union Public Service Commission and decades of EXPERIENCE have proved themselves to be ill-resourced? Further, I believe there was another organ called 'REVENUE INTELLIGENCE'. Is this subject beyond their comprehension also? more