NEW DELHI: The hex of tax may be again tailing the top dogs of India Inc. Taxmen believe that most assessees who show a near-Rs 10 lakh annual income are often hiding far more than what they reveal. So, CEOs, big honchos, directors of big-bottomline companies, gear up. In one fell swoop, the I-T department, in an effort to deepen collections, may put under the scanner those who have filed returns showing Rs 8-10 lakh income during the last 2-3 years.
Returns to be matched with financial growth and other business details of co
Special emphasis on estimating whether FBT has been deducted properly
For this, TDS wing may do limited surveys |
In India, less than one lakh file return of Rs 10 lakh and above, giving the tax sleuths a big headache.
The crosschecking of returns would mean matching tax returns with financial growth and other business details of the company.
For other salaried executives, special emphasis would be given on estimating whether the fringe benefit tax has been deducted properly. For this, the TDS wing may do limited surveys.
For FY07, taxmen have been told to increase the number of assesses in the Rs 10-lakh bracket by 50%, a target introduced last year. For those having an annual income above Rs 5 lakh but less than Rs 10 lakh for three consecutive years, the department has decided to satisfy itself with increased scrutiny, department sources said.
Since annual information return (AIR) has thrown up a huge information base, from which the department is corroborating and creating a PAN profile of assessees in high income bracket, the scanning is expected to come in handy. Some of the surveys may be taken up based on such available information.
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