Lok Sabha Question No. 5584 (UNSTARRED), answered on 2017-04-07
Subject: Information of Tax Evasion
Ministry: FINANCE
Asked by: RAJU ALIAS DEVAPPA ANNA SHETTI

## Government of India Ministry of Finance Department of Revenue

## LOK SABHA UNSTARRED QUESTION NO.  5584

TO BE ANSWERED ON FRIDAY, APRIL 07, 2017 CHAITRA 17, 1939 (SAKA)

## INFORMATION OF TAX EVASION

†5584. SHRI RAJU SHETTY:

Will the Minister of Finance be pleased to state:

- (a) whether the Government has permitted the informers giving information of tax evasion to use electronic medium to send such information;
- (b) if so, the details thereof;
- (c) whether  the  Government  has  put  in  place  adequate  provisions  to  protect  the  identity  of  the informer; and
- (d)    if so, the details thereof?

## ANSWER MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI SANTOSH KUMAR GANGWAR)

(a)& (b):  Central Board of Direct Taxes existing Guidelines for Grant of Rewards to informants, 2007 dated  29.11.2007  provides  for  Government's  policy  on  granting  reward  to  informants  furnishing specific information of undisclosed income/assets. The guidelines inter-alia provide that the informant claiming reward is required to furnish a written statements in the form prescribed in the guidelines and the statement should be signed in the presence of an officer not below the rank of an Income Tax Officer.  It  further  provides  that  where  the  information  is  received  by  post  the  informant  should  be asked to appear before an Income Tax authority not below the rank of an Income Tax Officer. This indicates  that  as  far  as  sending  information  is  concerned,  electronic  medium  is  not  prohibited  and informants can send information by post or electronic medium but after doing so he has to fulfill the condition of appearing before an Income Tax authority not below the rank of and Income Tax Officer in order to claim reward, if any.

Central Board Excise & Customs provides that there is no restriction on the mode of information on  tax  evasion.  However,  if  the  informer  wants  to  participate  in  the  reward  scheme  of  the Department, then he has to submit the information on paper in the prescribed manner.

- (c) & (d):  The Guidelines for grant of rewards to Informants, 2007 issued by Central Board of Direct Taxes, which is currently applicable, has mechanism for protection of identity of informants claiming rewards with regard to information given by them. These include the following:
- i. Identity of the informants is kept secret by giving them code numbers.
- ii. Particulars given by the informants are always kept in the custody of very senior officers.
- iii. No information relating to informants or rewards paid to them is disclosed to any authority except when required under the provisions of any specific law.

The  guidelines  issues  by  the  Central  Board  of  Excise  &  Customs  on  31.07.2015  and 03.05.2016  provides  that  the  identity  of  Informer  is  kept  strictly  confidential.  Only  the  left  thumb impression of the Informer is taken. His / her name or address is not recorded anywhere.  Recording Officers are duty bound from not disclosing the identity of the informer as it relates to the risk of life of the informer. Cases where the identity of the informer is not protected by the officer, action can always be taken under the Conduct Rules.

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