Business Standard

Slap higher tax rate on fraudulent returns: CBDT


The Central Board of Direct Taxes (CBDT) has asked the taxman to go over with a fine tooth-comb scrutiny on 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 has issued a two-page instructio­n/directive to all regional chiefs of the I-T 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 CBDT instructio­ns said. The instructio­ns, accessed by PTI, also ask the taxman that claim of "enhanced sales (especially by business category of taxpayers) may be compared with the central excise/VAT returns."

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