Govt detected Rs 1 lakh crore undisclosed income in FY14

Written by fe Bureau | New Delhi | Updated: Jul 17 2014, 05:31am hrs
The government has informed the special investigation team looking into black money that undisclosed income of more than Rs 1 lakh crore was detected through searches and surveys in 2013-14, a part of which accounts for certain transfer pricing adjustments relating to past years.

The income tax department detected over R90,000 crore in surveys and R10,792 crore in searches last fiscal. Nearly a third of this could actually be the tax liability if assessees could not satisfactorily explain why the detected amounts were not reported as income. In FY13, searches and surveys had led to detecting an undisclosed income of about R30,000 crore.

The tax department has asked all field officers to refer to the detailed inputs given by the Centralised Processing Centre (TDS) on businesses that either do not deduct tax at source on the payments they make or deduct less than the required amount and hold spot verifications including survey.

The tax department, which has to meet a 19% growth target in revenue collection this fiscal, has already made an action plan to recover past dues, which would be discussed at a conference of chief commissioners in the fourth week of this month.

Sources said that recovery of about Rs 42,000 crore in tax arrears, enhancing the share of tax deducted at source (TDS) in the total revenue receipts and casting the net wide to cover 22 lakh more individuals who make high-value payments but do not file tax returns are part of the agenda.

Intense scrutiny on the revenue recognition practices of real estate companies as well as on the weighted deductions claimed by companies on their research and development spending are also high on the departments priority.

The tax administration also intends to approach nearly 89 countries with which India has double tax avoidance agreements and another 16 nations with which it has tax information exchange deals to verify the source of income and other details of entities that make payments to businesses in India if their transactions are suspected of attempted tax evasion.