I-T dept to slap higher tax rate on fraudulently revised ITRs

TIL Desk/Business/New Delhi/ The CBDT has asked the taxman to go over with a fine tooth-comb scrutiny cases where a taxpayer has filed a revised income tax return (ITR) post demonetisation and directed them to slap “higher tax rate” in instances where black money is detected.

The policy-making body of the I-T has issued a two-page instruction/directive to all regional chiefs of the department on November 24, stipulating the way forward while assessing scrutiny cases selected for suspicious financial activity, post note ban.

“Unaccounted income so assessed in scrutiny assessment is liable to be taxed at a higher rate without any set off losses, expenses etc. Under section 115BBE (treatment of tax credits) of the I-T Act,” the Central Board of Direct Taxes (CBDT) instructions said.

The instructions, accessed by source, also ask the taxman that claim of “enhanced sales (especially by business category of taxpayers) may be compared with the central excise/VAT returns.”

“The idea behind the CBDT directive is that the legal provision of filing a revised or belated ITR is not misused and black income is not shown as white in the aftermath of demonetisation by a taxpayer.