I-T dept trains its guns on PAN-less high-value deals

The income tax (I-T) department has stepped up its efforts to increase collections as the government's revenues have not kept pace with the Budget target and the fiscal is drawing to a close in a little over two months time.

The I-T department plans to verify high-value investments, deposits or expenditure from persons who are not assessed for income tax or who have not furnished their PAN while entering into such transactions. The high value transactions that will be under the I-T Department scanner include the purchase of property, vehicles, shares and bonds, fixed deposits in banks and post offices, among others.

The assessees will be required to explain the source of these high-value transactions and whether these are properly accounted for. According to a finance ministry statement, in some cases the tax officials may also visit the premises of those who have undertaken these high-value transactions. The two-month-long drive is expected to raise tax collections and help the government bridge the fiscal deficit, which is expected to exceed the Budget target of 4.6 per cent of gross domestic product (GDP).

According to the finance ministry statement, those receiving notices under the special drive will be required to furnish their permanent account number (PAN). Those who do not have PAN would be required to immediately apply for the number to NSDL or UTISL.

Courtesy: Mail Today