Date:10/12/2005 URL: http://www.thehindubusinessline.com/2005/12/10/stories/2005121002650200.htm

Back I-T Dept keeping tabs on high-value transactions

Our Bureau

Hyderabad , Dec. 9

HAVING successfully conducted raids on 345 entities belonging 20 industrial segments and seized Rs 14.62 crore of unaccounted money recently, the Income Tax department here has appealed to the high-income individuals and institutions to adhere to the tax laws and avoid penalties.

The department has urged them to pay advance tax before December 15 to avoid penal action.

"We are keeping a strict vigil on all high value transactions from plasma televisions to modular kitchens to high-end vehicles to real estate deals. We are now in a position to track these transactions online. We are also fully equipped to gather information on investments and expenditure, track bank deposits and transactions, scrutinise selected tax returns and conduct surveys and searches. It is better, the taxpayers come forward voluntarily and pay taxes otherwise they will have to face penal consequences," the Chief Commissioner of Income Tax, Hyderabad-I, Mr D.V. Dharmik, said.

Addressing a press conference here on Friday, he said: "It is high time the taxpayers realise that the I-T department is fully geared up with the mechanism to track high value transactions made through cash, cheque or credit cards. Attempts to suppress such transactions are of no use at all."

According to him, the Department has set a target of collecting taxes of Rs 6,401 crore for the current fiscal as compared to Rs 4,800 crore achieved during last fiscal. Of the targeted tax collections for the current fiscal, the department has already collected Rs 3,036 crore by November-end.

"The potential for tax collections is several times higher than the targeted amount. The parallel economy in the country is as big as the accounted economy. Keeping this in view, the department has strengthened its information collection system on the high value transactions," Mr Dharmik said.

On the tax evaders on whom the department has kept a vigil, Mr Dharmik said the key segments include construction, engineering, educational institutions, finance, medical, pharmaceuticals, real estate, transport, information technology, entertainment, jewellery, power and cement.

Stating that Andhra Pradesh has around 18 lakh taxpayers at present, the Chief Commissioner said the department has been rendering satisfactory services to these taxpayers. Around 30 help centres were organised across the State till October for helping the taxpayers calculate their taxes and file their returns.

Refund certificates were being prepared within four months from the filing of returns. The department has also set up grievance redressal machinery to resolve the issues of taxpayers within eight days from the date of compliant, he said.