Do Not Panic When Income Tax Department Raids You

While a photograph can be readily tampered so modern, an individual’s signature can quickly be imitated, with besides innovative ways are being devised by the governance to minimize frauds.

The administration has intended to problem Biometric PAN Card to weed out frauds and fakes. You see, thru Biometrics, specific human parts rso are mapped to generate an one of a kind signature for every individual.

In the wake of a latest CAG report submitted to the Income tax department, they were advised to be sure no single ‘incometax’ payer is issued multiple cards. It was then that the finance ministry ok the conclusion of issuing biometric PAN cards. This newest biometric card will bear not one but 2 each and every fingerprints hand and mapping of the face the mapping of the Income Tax assessee.

According to a senior IT official department, it isn’t mandatory to have a biometric card.

For anybody who again have they may, may and in addition an one not have a biometric PAN card. It’s entirely at the individual’s discretion. This proposal had been stalled by the Income Tax Department and the finance ministry to avoid duplication with the unusual Identity numbers to be issued by the remarkable Identity Authority of India. Now in consonance with the version of p sources from the finance ministry, The biometric project is on once again. The step going to be quite significant whenever it boils down to stopping the misuse of this crucial identity document.

In 2006, it was the then Finance Minister Mr. After a lot of frauds about duplicate ones were uncovered under the patronage of police and IT raids, Chidambaram, who had proposed the biometric AN card. Whenever in consonance with the CAG report presented in the Parliament for over the year ‘201011’ lately, it was searched with success for that till March 2010, 958 lac PAN cards were issued entirely 3409 lac Income Tax returns were filed in that fiscal year which means a gap of 6171 lac betwixt the overall number of returns filed and the PAN card holders.

Whenever in consonance with CAG, this discrepancy must are since multiple PAN cards having been issued, or since unreported deaths of plenty of the PAN card holders.

It as well said that, The department needs to put in place appropriate controls to weed out the duplicate ones and on p of that update the position in respect of deceased assessees. Normally, the plan has eventually been set rolling, and a set of that kind of biometric cards will supposedly be issued under the patronage of the end of this year, as mentioned with the help of your Finance Minister in a press conference this July, right after plenty of hurdles and hiccups. He said that old enough cards may be ‘re issued’ anew.

The year is about to end but the plan has still not been implemented. The ministries efforts to reduce PAN and tax fraud have started paying off to some extent. While providing big security to the pecuniary transactions and a boost to one’s confidence, Nearly ‘3600 profiling’ of taxpayers is mooted and tried in modern Delhi. Merely think for a fraction of second. Uday writes frequently on pan card status http. India and regular upgrades. Furthermore, he writes on excellencies of pan card http. Uday writes very often on lawful regulatory compliance.

The term Raid in Indian Income Tax ordinance is incredulous and any unexpected encounter with IT sleuths mostly leads to chaos and vacuity. The subject or the situation is faced with confidence and serenity, when you are probably to experience such action it’s better to familiarise with so that. You see, income Tax Raid is conducted with the sole objective to unearth tax avoidance. Then once more, it’s the analyze which authorizes IT department to search any residential / buziness vehicles, premises and bank lockers and similar and seize valuables, the accounts or stocks.

It’s very essential to get an idea of some nitty gritty of ordinance on the subject, in order to face the situation efficiently.

Lack of knowledge leads to panic and all the discomfort. The knowledge of your lawful rights and responsibilities oftentimes protects you.

You can check the search warrant as well as note authorization, the date and address and all that, when Income Tax Search Party visits. You can in addition request for the identification of each and every raid participator team and note down their position and designation. You had the right to personally search every associate of raid team to avoid any planting of evidence.

Ladies is checked usually by lady members of raid team.

Ladies may not come forward in case the spiritual belief don’t help them to appear in partnership.

Whenever of any soundness related emergency you have got the right to call a doctor of your choice. You likewise have the right to have your meals at decent time. Children can move to university and right after clearance.

If of difficulty in seizure of jewellary or next valuable articles the department may leave such items after required sealing and all that in the custody of assessee.

Jewellery up to a specified limit is usually accepted. Besides, the raid team does not have the powers to seize or make away any valuables, in the event it’s a survey and not a search. Oftentimes they can mostly make away documents, files and suchlike Whatever was seized, double check whether they are being perfectly listed and described. Please have 2 of your neighbors stand witness to identical.

Make that prominent upfront and in addition provide details like the position and owner address, when any valuables don’t belong to you. The raids can entirely start between sunrise and sunset.

You can place your seal on the package in which seized stuff is stored.

You are as well entitled to a copy of panchanama.

You can as well call your an or lawyer. He may not have the right to enlighten things on your behalf yet he will ensure the raid team acts within the limits.

You would allow free and unhindered ingress to the premises.


You will identify all receptacles in which assets or books of account and documents are kept and to hand over keys to such receptacles.

You shall identify and enlighten the ownership of documents, the assets besides books of account looked for in the premises. You will identify every individual in the premises and to clarify their relationships to the individual being searched. You doesn’t need to mislead them by impersonation. In general, it’s an offence punishable u/s IPC doesn’t need to allow or uphold the entry of any unauthorized individual to the must not remove any article from its place with anything unlike the notice or knowledge of raid team.

You shall be punishable with imprisonment or fine or one and the other, in accordance with section IPC 204, in case you destroy any document with the intention of preventing similar from being produced or used as evidence before the court or communal servant.

You will reply regarding all queries truthfully and to some interesting stuff from your knowledge. You shouldn’t allow any 3-rd party to either interfere or prompt while your statement has been recorded with the help of the officer. In doing so, you would keep in mind that – In case you refuse to reply to a question on a subject relevant to the search operation, you shall be punishable with imprisonment or fine or all, u/s IPC 179. Whenever being legally bound by an oath or affirmation to state the truth, you shall be punishable by imprisonment or fine or one and the other u/s IPC 181, in case you make a false statement. Now let me tell you something. Similarly, in case you provide evidence which is false and which you see or believes to be false, you shall be liable to be punished u/s IPC 191.

You would affix your signature on the recorded the panchanama, statement or inventories.

The search action is concluded at the earliest and in a peaceful manner, You shall ensure that peace is maintained through duration of the search the duration and to cooperate with the search party in all respects.

As to enable the authorized officer to complete required followup investigations, cooperation will in addition be extended even after the search action is over. Options of Assessee after the Raid -In the event you feel that action of the department the action is unfair, you can file a writ petition before the lofty Court challenging the raid. Another option is to challenge the assessment before the Commissioner of Income Tax.

Ordinance right after the Raid The Department will difficulty notice to assessee to furnish a return of income for 6 previous years preceding previous year in which search is initiated. Action for the assessment could be taken within 6 years from end of assessment year, as per section 147. At as always, assessment for preceding 7 years is reopened. The preceding seventh year is omitted u/s 153A. It had been held in the event of Ramballah Gupta Asst. Furthermore, cIT that when search gets place, the action for nearly such year is taken u/s 147 and for nearly various years u/s 153A. However, assessment or reassessment for past 6 years will need to be completed by AO within twenty months from end of the pecuniary the end year in which last of the authorization had been executed. Of course the assessment of search year shall need to be completed as per above time limit. Just time limit for completion of assessment, This time limit is extended if of extraordinary audit, stay of court etcetera There is little time limit for constraint of notice for past 6 years.

Documents, assets looked with success for and accounts belong to any other individual, the concerned AO shall proceed against other guy as provided u/s 153A and 153B, in case any books of seized.

The assessment u/s 153C would be completed with twenty one months from end of the fiscal the end year when the search was conducted like assessment u/s 153A. The provision of section 234A and 234B or levy of interest shall be applicable. The penalty for concealment could be escaped in the event disclosure is made in the statement throughout search for over the years for which the due date for filing return of income has not expired in respect of search initiated before 0106. Anyways, when source of income declared u/s 132.

The Explanation five to section 271 isn’t applicable whenever of search initiated on or right after 0107. Deeming provision of concealment shall no longer apply in newest searches. Then once again, with an eye to get immunity, completely requirement is that assessee shall disclose extra income in the original income field. Make sure you scratch some comments about it below. The condition is that this return of income will was filed before due date of filing return of income. Of course, additional Provisions The authorized officer won’t seize stock in trade of a buziness. Hence, restriction on seizure of stock in trade applies merely to valuables and not cash. Authority to arrest assessee ain’t entrusted to the department. For instance, the department can’t withdraw cash from bank a/c or encash fixed deposits with anything unlike assessment as an output of search operations. Section 133A does not permit sealing of buziness premises. It is instructed by CBDT vide letter dated 10032003 that while recording statement at the time of the course of search and seizures and survey operations, no attempt would be made to obtain confession as to the undisclosed income. It is advised that there would be focus and concentration on collection of evidence for undisclosed income.

Assets which can’t be seized -Immovable assets Stock held in entrepreneurship Assets disclosed in Income Tax and Wealth Tax returns Assets appearing in books of account Cash for which explanation is given Jewellary mentioned in wealth tax return Gold up to 500 gm per married lady, 250 gm per unmarried girl and 100 gm per male housekeeping associate.

Jewellary as per status of the household the status in the event so appear to the investigating officer. Assets which could be seized -Unaccounted jewellary, lockers, cheques, gold, bullion, cash, drafts and promissory notes.

Steps to Prevent Raid Compliance with Summon and Notices u/s 131, 142 The Summons and notice calls for the books of account or different documents to be produced before the authorized officer as earlier.

One shouldn’t keep any unaccounted or undisclosed bucks, income and property popularly famous as Black credit. All unaccounted income will be declared. The chances of being trapped in a tax raid are minimized, in case such a disclosure is made unto its detection by the Income Tax Department. For example, it’s usually better to make a full disclosure of one’s income, partially and whether taxable fully exempt, in the Income Tax Return filed.

What leads to Income Tax Seizures, Raids or Search With a view to focus on big revenue yielding cases and to make the optimum use of manpower, the Board has decided that officers deployed in the Investigation Wing shall restructure the activities. They would adhere to the succeeding guidelines. Searches shall be carried out usually in cases where there is credible evidence to indicate substantial unaccounted income/assets in relation to the tax normally paid by the assessee or where the expected concealment is more than Rs.

Tax payers who are professionals of excellence better not be searched whereas not there being compelling evidence and confirmation of substantial tax evasion, Search operation will as well be mounted when there is evidence of hidden unaccounted assets arising out of a conspiracy to cause communal fake currency, harm, fraud, fake, gangsterism, narcotics, terrorism or smuggling stamp papers and such various different manifestations.

Henceforth, search operations shall be authorized mostly by the concerned DGIT, who going to be accountable for the action initiated under the patronage of the officers working under him. Like postsearch inquiries, he shall in addition ensure that all the work relating to search and seizure, preparation of appraisal report and handing over of seized books of shall and account be completed with the help of the Investigation Wing within a period of 60 months from the date on which last of the authorizations the last for search was executed.

In case issued would won’t be able to comply, or any individual who is in possession of any bucks jewellery. Earch Authorisation -Section 132 has failed to comply, or a man to whom such of notice.

Or search any guy, who has got out of or is about to get to or is in the building, place and other in the event the authorised officer has reason to suspect that such a guy has secreted about his guy or any such books of accounts etcetera and other or seize any such books of accounts and similar and suchlike place mark of identification and stuff and make a note or any inventory of such, The warrant of authorisation can entirely be issued to specific specified authorities who alone for the purpose of making search and seizure can enter and search any building and suchlike where he has reason to suspect that such books of accounts bucks jewellery break, are kept and open the lock of actually any entry door etcetera, where the keys thereof are not attainable.

The code laid down in the Income Tax Act for search and seizure confers huge powers to the authorities. The powers are judicially approved and held to be constitutionally valid on grounds of flagrant tax evasion and massive flow of unaccounted currency in the setup. That being it desirable that such powers be sparingly used and when used every feasible regulation adhered to, while this kind of are valid points one can’t equally deny the matter of fact that the activities of search and seizure are infringement on persons liberty. The CA Jain, can or even Author be contacted at, newest, 9, Pusa Road, 21 and Skipper apartments Delhi -110005, Mobile No.

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