Kochi: The Income-Tax Department has sent out letters to more than 10,000 assessees, most of them pensioners, for attempted tax evasion, especially on income from sources other than pension. The department is awaiting their replies before launching prosecution under IT Act section 276 C, which attracts fine and jail ranging from six months to seven years depending on the severity of the offence.
Sources said the information on “definite concealment of income” on a massive scale has been detected on the basis of details collected from banks and cooperative societies under IT Act 133 (6), which empowers the department to call for details from banks and other financial details on account holders. The move is directed at evaders across the board as it involves even senior officials, retired from the IT Department.
The department had sensed an opportunity following reports of huge funds amassed by primary cooperatives from pensioners, who deposit their earnings for higher rates of interest and in return enjoy immunity from tax payment on the sly. The primary cooperatives accept, without a blink, self-attested statements filed by the assessees and do not insist on tax deduction at source, which is a statutory liability.
What if the primary cooperatives are more than convinced that the pensioners live solely by their monthly pensions and do not have income from any other sources! Letters on suspected cases of tax evasion have been sent during the last one month. In many cases, the assessees were being put to more hardships as chartered accountants advise their clients to disclose only deposits that are under the IT radar. “This is inviting more trouble”, a senior official told DC. The department now plans to launch the next phase of proceedings, which would be based on replies being sent by assessees, a chunk of them from Thiruvananthapuram. One of the cooperatives zeroed in is the one functioning out of Vydyuthi Bhavan. The department would reopen the assessment wherever evasions have been confirmed and statements of income do not reconcile. In cases of wilful attempt to dodge tax, the department is planning deterrent action.
