PROPOSALTO AMEND SECTION 132 of the Income Tax Act
In the recent budget, there was a 'small and hidden' section that I believe could be the government's first step towards Notebandi 2.0.
While everyone thought that this was balanced budget, with some tax-respite...
Most would've missed this small hidden proposed tax-amendment that could have a huge impact on your life.
The proposal is to amend Section 132 of the Income Tax (IT) Act.
Now, I am not a tax expert. However, after reading through the amendment and speaking with people who are experts in this domain...
Here's how I see the amendment...
It's a proposal, which gives the Income Tax officials full-right to...
Enter and search your house, office, or shop...without giving any reason.
Seize your gold, silver, jewelry, cash, or other valuable articles...without giving any reason.
Scan your book of accounts, other documents, and even take copies... without giving any reason.
The IT officials could come knocking on your door to 'search and seize' your wealth...
WITHOUT giving any reason.
Yes, earlier, the IT Department had to prove that they had 'reason to believe' you were hiding your wealth.
But now, under this proposed amendment, they have been given full right to scrutinise, and in my view – harass, anyone and everyone they want...
Without having to disclose why they had "reason to believe" that any violation existed.
If you ask me, I believe this is as intrusive as a government can get.
There are people who are already raising their voices against this bill...
As Baijyant 'Jay' Panda, a member of Lok Sabha from Biju Janata Dal, wrote in a column in The Times of India...
"Permitting taxmen to conduct raids without due process will be disastrous."
Or as was published in Business Standard...
"If assessment officers declare they have reason to believe, or suspect, that an assessee is concealing assets, then they can order a search operation. If the Bill succeeds in amending the Income Tax Act, then this decision will be beyond review. This would have an unfortunate effect on the nature of tax administration in the country, and only increase fear of arbitrary behaviour."
Now, we both know how this authority could be abused.
IT officials could easily coerce people with a threat of 'IT Raid'...
And if the government does start coming after your money, gold, silver, jewelry, cash, and more...that will be the beginning of Notebandi 2.0.
So, with this proposal, the government has already taken the first step in that direction.
However, even though that could be the first big step towards Notebandi 2.0, it doesn't mean that the government hasn't been doing anything over the years...
The situation, for the honest common citizen, has been worsening with each passing year... more
While everyone thought that this was balanced budget, with some tax-respite...
Most would've missed this small hidden proposed tax-amendment that could have a huge impact on your life.
The proposal is to amend Section 132 of the Income Tax (IT) Act.
Now, I am not a tax expert. However, after reading through the amendment and speaking with people who are experts in this domain...
Here's how I see the amendment...
It's a proposal, which gives the Income Tax officials full-right to...
Enter and search your house, office, or shop...without giving any reason.
Seize your gold, silver, jewelry, cash, or other valuable articles...without giving any reason.
Scan your book of accounts, other documents, and even take copies... without giving any reason.
The IT officials could come knocking on your door to 'search and seize' your wealth...
WITHOUT giving any reason.
Yes, earlier, the IT Department had to prove that they had 'reason to believe' you were hiding your wealth.
But now, under this proposed amendment, they have been given full right to scrutinise, and in my view – harass, anyone and everyone they want...
Without having to disclose why they had "reason to believe" that any violation existed.
If you ask me, I believe this is as intrusive as a government can get.
There are people who are already raising their voices against this bill...
As Baijyant 'Jay' Panda, a member of Lok Sabha from Biju Janata Dal, wrote in a column in The Times of India...
"Permitting taxmen to conduct raids without due process will be disastrous."
Or as was published in Business Standard...
"If assessment officers declare they have reason to believe, or suspect, that an assessee is concealing assets, then they can order a search operation. If the Bill succeeds in amending the Income Tax Act, then this decision will be beyond review. This would have an unfortunate effect on the nature of tax administration in the country, and only increase fear of arbitrary behaviour."
Now, we both know how this authority could be abused.
IT officials could easily coerce people with a threat of 'IT Raid'...
And if the government does start coming after your money, gold, silver, jewelry, cash, and more...that will be the beginning of Notebandi 2.0.
So, with this proposal, the government has already taken the first step in that direction.
However, even though that could be the first big step towards Notebandi 2.0, it doesn't mean that the government hasn't been doing anything over the years...
The situation, for the honest common citizen, has been worsening with each passing year... more
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View all 36 comments Below 36 comments
Initial step should be to raid the Immediate Retired Revenue Dept. , Pollution Control Board, VAT office, PWD officer, Registrar office Employee's , and Police Dept employee , irrespective of there position. They can get enough from them as undeclared asset by them. Then comes the ordinary citizen. Can IT Department prioritize ? more
May 20
Govt can show their good faith by first raiding houses of all politicians, babus, IT authorities, declare results of the same, then (as usual) mess around with normal tax payers. Otherwise all this "action" lacks credibility, compounded by the law permitting political parties to take cash, and not even declaring sources. more
May 20
In a country where every citizen looks for loop hole to escape tax payment, what can be the law and enforcement. I do not mind officials checking anytime. I am a tax payer. An honest tax payer. Retired senior citizen. Still mindful that I pay all my dues. So the short answer is - increase the tax payment from 3 % to atleast 20 %, in a shorttime. Also enforce a system to check expenses by government. T N PILLAI CHENNAI more
May 20
This amendment is definitely will not sustain in the court of of law if its challenged. It may not send a notice to the tax payer bur surely there should be provision to take the sanction of the superior officers in writing as to such action is to be taken against the Tax payer or non tax payer. more
May 19
