IT Notice: Through this exercise, the IT department aims to find out whether these people are hiding their real income or doing large transactions in cash, which is leading to tax evasion. This step of the Income Tax Department is part of the government’s plan in which data analytics is being used to prevent tax evasion.
Tax Evasion: If your income is high but your expenses are zero, yet you are living a luxurious life, then there is bad news for you. The Income Tax Department can ask you for the details of your daily expenses, like which shoes do you wear, which salon do you get a haircut in, or which restaurant do you go to eat in? According to sources, the IT department is asking for the details of household expenses. Some taxpayers are getting notices from the IT department. They have been asked for information about haircuts in salons and restaurants. Bills for ration, electricity and gas have also been asked.
According to information received from sources, the IT department has also asked for the details of cosmetics and perfumes from such people. IT sources say that these details are sought in faceless assessment. Such notices can be sent in the case of high income group. IT officers ask for such information in special circumstances. These details are sought on the mismatch of income and expenditure in ITR. It is difficult to comment on the notice without DIN, PAN, AY.
Through this exercise, the IT department aims to find out whether these people are hiding their real income or are making large transactions in cash, which is leading to tax evasion. This step of the Income Tax Department is part of the government’s plan in which data analytics is being used to prevent tax evasion.
IT department sources say that these notices have not been sent to everyone. These include only such people with high income, who show huge income in their IT returns, but there is a lot of difference between their lifestyle and the money withdrawn from the bank. In simple terms, if someone lives a luxurious life, eats in expensive restaurants, wears expensive clothes but withdraws less money from the bank, then the department suspects that he has some other source of income, which he has hidden.
Most Read Articles:
- 8th Pay Commission: Big news! This will be the salary of employees from peon to clerk, fitment factor will increase so much
- TCS and TDS New Rules will come into effect from April 1, know the new rules or else you will get into trouble
- Credit Card Link UPI: Link your credit card to UPI from home, know step-by-step guide
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
