Modi government's demonitisation drive is nearly failed now in disclosure of black money. Government has not been able to get revenue in form of taxes or non deposition of old currency notes of Rs. 500 and Rs. 1000 denomination.
Now government is trying to get more taxes with the help of harsh provisions (like 115BBE) of Income Tax act. Every one is expecting income tax officials to be much harsh rather cruel. Now if Income tax assessing officer expects that any assessee has not disclosed his income fully or truly then explaination would be called. Transactions for which problem may arise are like:-
Loans taken from Family members or friends
Properties and Gold etc received from parents or grand parents.
Money spent in family matters like marriage or major illness etc.
Source for any property purchased.
Then ITO would ask for proper source of funds and if ITO is not satisfied for geniuneness of Source or transaction like ITO is not satisfied that you have taken loan from friend and doubts that cash has been paid back against the loan bank entry then this loan amount would be added to income and 83% of such addition in income would be taken as tax and penalty.
Every one in India knows that how the officers get satisfied. Now they have much more sharp and hard teeth to frighten the tax payers.
If government is planning to work this way then what will happen to the agenda of Ease of doing Business.
Now government is trying to get more taxes with the help of harsh provisions (like 115BBE) of Income Tax act. Every one is expecting income tax officials to be much harsh rather cruel. Now if Income tax assessing officer expects that any assessee has not disclosed his income fully or truly then explaination would be called. Transactions for which problem may arise are like:-
Loans taken from Family members or friends
Properties and Gold etc received from parents or grand parents.
Money spent in family matters like marriage or major illness etc.
Source for any property purchased.
Then ITO would ask for proper source of funds and if ITO is not satisfied for geniuneness of Source or transaction like ITO is not satisfied that you have taken loan from friend and doubts that cash has been paid back against the loan bank entry then this loan amount would be added to income and 83% of such addition in income would be taken as tax and penalty.
Every one in India knows that how the officers get satisfied. Now they have much more sharp and hard teeth to frighten the tax payers.
If government is planning to work this way then what will happen to the agenda of Ease of doing Business.
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