Lok Sabha Question No. 1930 (UNSTARRED), answered on 2017-12-29
Subject: Reward to IT Informers
Ministry: FINANCE
Asked by: RODMAL NAGAR

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF REVENUE *****

## LOK SABHA

## UN-STARRED QUESTION No. 1930

## TO BE ANSWERED ON FRIDAY, THE 29 th  December, 2017/

## PAUSHA 08, 1939 (Saka) REWARD TO IT INFORMERS

## 1930. SHRI NAGAR RODMAL :

Will the Minister of FINANCE be pleased to state:

- a)  whether the Government proposes to implement/has any scheme in place to reward the persons giving information about tax evaders;
- b)  if so, the details thereof; and
- c)  the  amount  of  reward  fixed  by  the  Government  under  the  said scheme?

## ANSWER

## MINISTER OF STATE FOR FINANCE

(SHRI SHIV PRATAP SHUKLA)

- (a)  The  Government has a scheme in place to reward the  persons giving information about tax evaders.
- (b) The Scheme is called 'Guidelines for grant of rewards to informants, 2007'. Reward in  pursuance  of  information  given  on  or  after  1.12.2007  as  well  as  cases  of  reward pending on 1.12.2007 are governed by this. Brief details of the guidelines are as under:
- i) If  any  person  wants  to  furnish  information  of  tax  evasion  in  the  expectation  of reward  from  Income  Tax  Department,  he/she  is  required  to  furnish  such information  in  the  form  of  a  written  statement  in  prescribed  form  before  an Income-Tax authority not below the rank of Income-Tax officer.
- ii) A  person  is  eligible  for  reward  only  if  he/she  furnishes  specific  information  of undisclosed income and wealth and action is actually taken in pursuance of such information by Income Tax department.
- iii) Identity of informant is kept secret by giving them a code number and thereafter identifying him with that code only.
- iv) The  competent  authority  to  grant  the  reward  up  to  Rs.  1  lakh  is  Director/ Commissioner of Income Tax, for reward above Rs. 1 lakh up to Rs. 15 lakh a committee  headed  by  Director  General  of  Income  Tax  (Investigation)  and  for reward above Rs. 15 lakh, Central Board of Direct Taxes.
- v) Reward  is  not  payable  to  any  Government  Servant  for  furnishing  information obtained in the course of his/her normal duties as a Government servant.
- vi) Reward is an ex-gratia payment granted in the discretion of competent authority. The authority  competent  to  grant  reward  keeps  in  consideration  circumstances like accuracy of information, extent & nature of help by informant, risk undertaken, quantum of work etc. in determining reward to informant.
- vii) In this scheme, reward may be granted at the following three stages:-
- (a) Interim Reward - An interim reward not exceeding 5% (five percent) of the extra tax  levied  or  which  can  reasonably  be  expected  to  be  levied  but  subject  to  a ceiling of Rs.1,00,000/- in a group of cases may be granted before determination of tax by assessment.
- (b) Part of Final RewardReward may be granted as a part of final reward in cases where  assessments  have  become  final  in  some  of  the  cases  but  appeals  are pending in some of the assessments and the competent authority is satisfied that extra  taxes  attributable  to  such  assessments  or  such  issues,  which  have  been levied and realized, will not be reduced in future.
- (c) Final Reward Maximum amount of total reward in a group of cases is 10% of extra  tax  levied  and  actually  realized  subject  to  a  ceiling  of  Rs.  15,00,000/-. Central Board of Direct Taxes may grant higher reward if certain conditions are fulfilled.
- viii) Reward  may  be  granted  also  in  cases  where  information  furnished  by  an informant to another Government Department is passed on by that Department to the Income Tax Department.
- (c) As replied in Para (b)(vii) above.