Are you one out of 7 Lakh to be Receiving Income Tax Notices?

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In another strong effort to unearth black money and tax evaders, the department has sent a total of whopping 7 Lakh tax notices. These notices will focus on the dodgy fact that big transactions were made but the PAN was not cited when conducting the transaction.

The main objective of issuing PAN which is a 10 alphanumeric unique code is to track the financial activities of individuals. Hence, in every income or expense of a big amount, this number is required to be cited for helping the authorities keep tabs.

Tax notices

The letters or tax notices that are being sent out will ask these individuals to put their PAN number against these transactions. Both the parties involved in these transactions are likely to receive a notice asking the same. Moreover, for the convenience of these people receiving the notice, a new section has been launched in the e-filing portal wherein they can own up these transactions and also provide responses against them electronically from the convenience of their own homes. In order to log into the e-filing portal against these transactions by entering a unique Transaction sequence number which will be provided to them in the tax notice itself. This way they can link their transactions.

The transactions that are under the radar for scrutiny have been collected from 2009 onwards to this very fiscal year. People who have deposited more than INR 10 Lakhs in hard cash in their savings bank account are being asked to furnish more information. Also, people who have transacted in buying or selling property above Rs INR 30 Lakhs are being asked to do the same.

People who will receive this dreaded tax notices can prepare for this elaborated statement which will be penned in the letter – “The parties can log in to their e-filing portals and quote the given unique transaction sequence number in the letter to link their transaction to PAN easily. A response can also be provided by the parties electronically by either owning up the transaction or denying it completely as not their own.

The government is still considering the actual process of denying or banning a cash transaction above INR 3 Lakhs in certain cases.  This was recommended by the specialized expert committee appointed by the Supreme Court recently.

Conclusion

This decision of issuing tax notices was made just a day after the government passed the Benami Transactions Bill. This bill provides the ground for the confiscation of any asset that has been held under the name of another person or even a fictitious name. They did it for avoiding tax duties, another landmark reform in the fight against black money frontier.

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