INCOME TAX SCREWING TAX EVADERS

Income tax department has taken a strict action against the tax evaders as they have revised there guidelines for the person or the entity can’t settle a case of tax invasion by paying his tax due under the black money and benami law “generally” non-compoundable. This means that person have to pay penalty and the interest.

The new guidelines will be imposed from 17 June 2019 and apply to all the compounding cases received on 17 June and after that.

 There are 13 cases, where the offences are not to be generally compounded, and also grouping the offences in two parts, the Central Board of Direct Taxes (CBDT) has given order to its senior officers to circulate the revised guidelines for compliance by concerned authorities.

If the offence is from the category 'A' which include failure to pay tax deducted at source under Chapter XVII-B or tax payable under Section 115-0. Failure to pay the tax collected at source also falls under this category.

In the category 'B' offence which include willful attempt to evade tax, failure to produce accounts and documents, and false statement in verification.

 The first category offences can be go through the compounding, offences such as willful evasion of tax and removal or concealment or transfer or delivery of property to preventing someone from tax recovery in a search operation are not to be compounded.

Offences under Sections 275A, 275B and 276 of the Act will not be compounded

The guidelines state that a category 'A' offence on more than three occasions would not be generally compounded.

Any offence which has bearing under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 would not be generally compounded