Department of Revenue detects more than Rs. 1.37 lakh crore of tax evasion

A release from the Ministry said through 23,064 searches and surveys conducted (Income Tax 17,525; Customs 2,509; Central Excise 1,913; Service Tax 1,120), more than Rs. 1.37 lakh crore of tax evasion has been detected (Income Tax 6,9434; Customs 11,405; Central Excise 13,952; Service Tax 42,727).

Simultaneously, criminal prosecutions were launched in 2,814 cases (Income Tax 1,966; Customs 526; Central Excise 293; Service Tax 29) and 3,893 persons were placed under arrest (Customs 3,782; Central Excise 47 and Service Tax 64)

The release mentioned that the Enforcement Directorate registered 519 cases and conducted 396 searches. Arrests were made in 79 cases and properties worth Rs.14,933 crore were attached.

The Ministry said that Benami prohibition law, which remained in-operative for the past 28 years, was made operational through a comprehensive amendment with effect from November, 2016.

More than 245 benami transactions have already been identified by the department. Provisional attachments of properties worth Rs.55 crore have already been made in 124 cases.

Other steps taken by the department include penalising cash transaction of more than Rs. 2 lakh; limiting allowable cash expense up-to Rs.10000 only; making Aadhaar mandatory for obtaining PAN and filing of income tax returns; making PAN mandatory for cash deposits above Rs.50,000; compulsory linking of PAN with bank accounts; prohibiting cash of Rs. 20,000 or more in transfer of immovable property by imposition of a penalty of an equal amount and mandatory reporting of cash deposits above Rs.2.5 lakh in savings accounts and Rs.12.5 lakh in current account between November 9 and December 30, 2016.

The release also highlighted that crackdown against thousands of shell companies engaged in nefarious activities was effected through enforcement actions (searches, surveys, arrests, prosecutions) by the LEAs (IT/ED/MCA/SFIO/CBI).

During the last three financial years (2013-14 to 2015-16), Income Tax investigations led to detection of more than 1155 shell companies / entities used as conduits by over 22,000 beneficiaries, the release said.

The amount involved in non-genuine transactions of such beneficiaries was more than Rs. 13,300 crore.

The Ministry of Corporate Affairs has issued more than a lakh notices for striking off names of defunct / non-compliant companies.

A high powered group has been set-up for coordinating and monitoring the actions taken by departments concerned with the objective of eliminating the conduits of black money generation and application.