The government expects to garner at least Rs 2,200 crore in income tax from 2.2 lakh cases related to demonetisation, which are currently being scrutinised by the department, a Ministry of Finance official told Financial Express Online.
The government is hoping to mop up at least Rs 2,200 crore in income tax collections from 2.2 lakh cases related to demonetisation, which are currently being scrutinised by the department, a Ministry of Finance official told Financial Express Online.
Those cases have been picked up for assessment which have high chances of tax evasion, the official said requesting anonymity. Some high value deposit cases may even fetch the government as much as up to Rs 20 crore each, he said. The government has picked up only high-value deposit cases as it lacks enough resources to scrutinise all the demonetisation cases.
“We picked up those cases which involve high quantum of cash. There are 2.2 lakh cases which have some issues and need verification. These cases may translate into some decent addition to the revenue kitty of government,” the official cited above told Financial Express Online.
Scrutiny is a long process and will likely get completed in the month of December 2019. Further, the tax collected from these cases would be accounted in the revenue of the next financial year 2019-20. The assesses will be served demand notice and they will be given 30 days time to pay their dues.
Apart from the above demonetisation cases, there are other 1.3 lakh corporate cases too which are currently under scrutiny as a regular exercise of the income tax department, the official said.
Earlier this month, CBDT had launched final assessment of 87,000 cases related to substantial cash deposit during demonetisation period by those who had not filed their return of income for assessment year 2017-18.
The income tax department had also issued a standard operating procedure or SOP for the tax officials for the assessment of these cases. It had said that the “Best Judgement Assessment” should be completed by 31 March or latest by 30 June 2019.
However, the official told Financial Express Online that it wouldn’t be possible for the income tax department to complete the assessment by 30 June, and it would only complete by December, 2019.