1. Income Tax Department to issue 7 lakh letters for non-PAN high-value transactions

Income Tax Department to issue 7 lakh letters for non-PAN high-value transactions

The Income Tax department has details of about 90 lakh non-PAN transactions transactions for the period 2009-10 to 2016-17.

By: | Updated: July 21, 2016 4:52 PM
income tax department The Income Tax department has details of about 90 lakh non-PAN transactions transactions for the period 2009-10 to 2016-17.(Photo: PTI)

The Income Tax Department has decided to issue 7 lakh letters seeking information in respect of high value non-PAN transactions. The department has details of about 90 lakh such transactions for the period 2009-10 to 2016-17. The I-T department has, with the help of its in-house computer techniques, grouped such non-PAN transactions and identified 7 lakh high-risk clusters having around 14 lakh non-PAN transactions which are being scrutinised closely.

Under the Annual Information Returns (AIR),various types of high-value transactions were being reported to the I-T Department. These include reporting of cash deposits of Rs 10,00,000 or more in a saving bank account, sale/purchase of immovable property valued at Rs 30,00,000 or more. Many of these transactions do not have PAN linked to it.

According to a press release, the Income Tax Department will be issuing letters to the parties of these transactions requesting them to provide their PAN number against these transactions. For the convenience of the parties to whom these letters are addressed, a new functionality on e-filing portal has been developed wherein they can own up transactions and provide structured response electronically.

The department has said that parties can log-in to their e-filing website and by quoting a Unique Transaction Sequence Number provided in the letter sent to them and can link their transaction with their PAN easily.

They will also be able to respond to this letter electronically by choosing the option of either owning up the transaction or denying the transaction as their own. The responses received from such parties online will be examined by the Department. The department will initiate further necessary action in those cases where no replies are received.

  1. N
    Narendra M
    Jul 22, 2016 at 2:48 am
    This is a welcome initiative of the Income Tax Department (ITD). I have a few comments to make on the subject. (a) Question is whether the ITD is in a position to use all information which it receives in course of its business. My view is that the ITD has still not procured the software to process such information. For example, if a PAN card holder allows income tax to be deducted at source from his/her income but does not file Income Tax Returns(ITRs) for years, the ITD should be in a position to find out reasons for non-filing of ITRs. It may be that such PAN card holders may be dummies of someone else. (b) What has the ITD to say about transactions which escape tax net through bogus agricultural activities? (c) ITD has not shown courage to bring to book influential politicians who it is well-known to am wealth through unfair mans. Recently a minister in Maharashtra was in the news for under pricing of a land purchase transaction. I understand that he has still not been asked to explain the transaction. (d) Obviously, we need an ITD which is vigilant as also efficient, as without such an ITD it is futile to expect increase in the number of taxpayers who file ITRs as also increase in revenue from Income tax.
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