I-T department to scrutinise 0.35% of returns filed for FY18

In what would make the income tax department less intrusive, it would scrutinise only 0.35% of returns filed for the last fiscal, down from 1% earlier. While the department would repose faith in taxpayers, the enforcement action would be severe on tax evaders, Sushil Chandra, chairman of the Central Board of Direct Taxes (CBDT), said on Thursday. “We have increased the tax base and have full faith on taxpayers. Last year, we got 6.86 crore returns and I have picked up only 0.35% cases for scrutiny. This means that 99.65% of the returns filed can be at peace,” Chandra said at an event oraganised by Assocham.

He said of this 0.35% cases picked up for scrutiny, 0.15% are for ‘limited scrutiny’ and 0.20% are for ‘full scrutiny’. “This shows that in only high tax evasion cases, we will go for scrutiny,” Chandra said. A scrutiny procedure in the income tax system pertains to a case where a taxpayer is required to provide a number of documents to the assessing officer after his or her case is picked up for a threadbare examination after study of their tax returns.

In 2017-18, the direct tax department collected Rs 10.03 lakh crore of revenue on account of income tax and corporate tax, a growth of 18% over last year. Speaking on the status of operation Clean Money, which was launched to investigate suspicious deposits made into the bank accounts during the note ban period, Chandra said a large number of persons who received notice from the department had filed tax returns. However, for those who have failed to do so, the department would frame assessment orders.

Earlier this week, the government informed Parliament that it had received Rs 6,416 crore as self-assessed tax from over 2 lakh persons who were served with notices for depositing cash worth more than Rs 10 lakh after demonetisation, but had failed to file any income tax return. These notices were served to more than 3 lakh persons.

Source - FE 

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