New Delhi: If you are a big spender but have not paid your taxes, you better pay attention. The Finance Ministry has obtained details of more than 18 lakh high value transactions for the financial year 2005-06 and now plans to conduct a probe into income tax returns on a massive scale.
A few years ago, a heavy expenditure would mean buying an expensive car, an expensive watch or a vacation abroad. But now, big spending is being also associated with investments in the stock markets, mutual funds or real estate.
The amount involved in seven categories of such high-profile transcations now equals 53% of the GDP. According to statistics obtained for the last financial year by the Finance Ministry in its Annual Information Return or AIR, 6 lakh transactions of over Rs 2 lakh each, had a combine worth of over seven and a half lakh crore rupees. At the same time, 90 thousand transactions of over Rs 5 lakh, was totally worth over Rs 3 lakh 16 thousand crore.
29 thousand transactions involving the purchase and sales of bonds and debentures worth over Rs 5 lakh, the net worth was more than Rs 95 thousand crore. More than Rs 74 thousand crore changed hands in 1 lakh 44 thousand transactions involving shares worth more than Rs 1 lakh.
Faced with these mind-numbing figures, the Finance Minister has already issued notices to those who furnished wrong PAN numbers while transacting business involving such high amounts. Now, the Ministry has turned its attention to income tax returns. According to the Ministry's figures, Of the total income tax returns filed last year, about 0.8% was scrutinised.
Preparations are on to scrutnise at least 2% of returns filed in the assessment year 2006-07.
Through this exercise, the Ministry will determine if returns filed by tax payers are proportionate with the amount they spend. The Ministry hopes this move will shake up tax defaulters and bring in more revenue to the govermnent's coffers.
Big spending
6 lakh transactions of over Rs 2 lakh each
90,000 transactions of over Rs 5 lakh
29,000 transactions of sale & purchase of bonds & debentures
1.44 lakh transactions of over Rs 1 lakh each in shares
Only 0.8% of tax returns scrutinised
To scrutinise at least 2% of returns in 2006-07
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