North India Statesman
[ad_1]
Mumbai: The Central Board of Direct Taxes (CBDT) has launched a thorough investigation into foreign remittances of over Rs 6 lakh. CBDT sources said the probe was initiated after the amount of money sent abroad and the amount of expenditure in some cases did not match the income declared by the person concerned.
There have also been deficiencies in collection of tax at source (TCS).
The CBDT has directed various field offices to start checking the details of outward remittances i.e. Form 15CC submitted by authorised dealers to the Income Tax Department every three months.
Sources further said that the list of high-risk cases will be prepared from the data of the financial year 2020-21 and the field offices have been directed by the board to submit the list of such cases by September 30.
Preliminary notices will also be issued by December 31 to those whose expenditure is found to be not in accordance with their income.
This investigation can detect cases where a large amount of money has been sent abroad, but the taxpayer has not mentioned it in the return file. The purpose behind this exercise is to catch and control tax evasion.
Sources further said that the CBDT has ordered an inquiry after a taxpayer had declared an annual income of Rs 5 lakh in his returns but had remitted amounts in excess of the income through various dealers in the last three years.
Twenty percent TCS has been imposed on foreign remittances above seven lakh rupees under the liberalised remittance scheme. However, amounts sent for medical and educational purposes are excluded. It has also been observed that some individuals often deposit amounts below the limit to avoid TCS.
