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."