Income Tax Department Raids Roadside Eateries, Small Organizations To Make Statement Scheme A Success
Posted on September 30 2020
The income tax branch is leaving no stone unturned in its bid to make the Income Declaration scheme (IDS) a fulfillment.
With less than a day to move before the September 30 deadline, small agencies and roadside eateries, many of which have by no means saw an IT officer earlier and are the latest to feel the heat.
About 50 small businesses which include famous Vada Pav Centre, Dosa Centre, Sandwich Centre, Jalebiwallah were raided and the owners have been asked to claim their black money under IDS in Mumbai.
Also about 100 raids or surveys were done in Kolkata, New Delhi and Ahmedabad.
The raids are based on the information by the Income Tax Department in the last 6 months. According to the Tax official, about 1 lakh small businessmen and shopkeepers have been diagnosed by the government as possible evaders. Also, it is understood that the government has given the targets for each and every city.
The tax department said that as per the target of Rs. 2500 crore only for Mumbai and New Delhi. The actual figure could not be confirmed by the tax officials. Raids and surveys have been increased in the past week as per the experts.
In the past 25 years there were no such things as raids or surveys on the small businesses. They have seized cash from the shops, many shopkeeper were picked up in a surprise as they have never experienced tax officials ever as stated by a chartered accountant, who is dealing with this matter. According to few estimates, as much as Rs 2 crore may be seized. The push is ready to enhance.
People with the knowledge of the matter said that the tax officials are expected to conduct about 1,000 similar raids or surveys across India by the 30th of September.
A tax consultancy said that many small time businessmen have now been on the receiving end as the income tax department seems to be going after them. In most cases the tax officials are asking the tax payers to declare all the money under the IDS.
At least 20 raids are to be conducted every day in major Indian cities, said the people cited above. Apart from Mumbai and New Delhi, tax officials are also targeting small businessmen in Kolkata.
The people cited above stated that at a minimum 20 raids are to be carried out every day in major Indian cities. Tax officers are also concentrating on small businesses in Kolkata, apart from Mumbai and New Delhi.
The head of the tax firm based in Kolkata said that anyone who has ever dealt in penny stocks or has a company that has a lot of related party transactions has been questioned. Surprisingly, many companies that have filed for returns were also told by the tax officials to declare money under IDS.
Tax officials are also pursuing the costs and the tax deduction claims by the businesses. Some of the estate builders were raided in New Delhi and Mumbai.
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