Lok Sabha Question No. 728 (UNSTARRED), answered on 2018-12-14
Subject: Violation of Income Tax Laws
Ministry: FINANCE
Asked by: Kunhalikutty, P.K., RAMSINH PATALYABHAI RATHWA

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

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## LOK SABHA UN-STARRED QUESTION No. 728 TO BE ANSWERED ON FRIDAY, THE 14 th  December, 2018/ AGRAHAYANA 23, 1940 (Saka)

## VIOLATION OF INCOME TAX LAWS

728. SHRI P.K. KUNHALIKUTTY: SHRI RAMSINH RATHWA:

Will the Minister of FINANCE be pleased to state:

- (a)    whether  Director  General  of  Income  Tax  (Investigation),  New  Delhi  have  received complaints  from  some  Public  Representatives  regarding  evasion  of  Taxes/  TDS  and blatant violation of Income Tax Laws by some individuals/NRIs in respect of stashing of unaccounted money in HDFC bank, Malviya Nagar, non-deposit of 20 percent TDS in sale of property in South Delhi including Malviya Nagar and transfer of money to New Zealand during the last five years through Hawala transactions;
- (b)    if so, the details thereof and the action taken by the Government on these complaints by initiating appropriate proceedings in the matter; and
- (c)    if not, the reasons therefor?

## ANSWER

## MINISTER OF STATE IN MINISTRY OF FINANCE (SHRI SHIV PRATAP SHUKLA)

- (a)  Complaints of tax evasion, including complaints from Public Representatives, containing allegations  of  evasion  of  Taxes/  TDS  by  some  individuals/NRIs  in  respect  of  stashing  of unaccounted  money,  non-deposit  of  TDS  in  sale  of  property  and  transfer  of  money  to  foreign countries through Hawala transactions are received by the Central Board of Direct Taxes (CBDT) and its field offices, including Director Generals of Income Tax (Investigation). However, there is no centralised database maintaining allegation-wise details of such complaints received by field offices of the CBDT.
- (b)  The complaints received in CBDT and its field offices are forwarded to the respective jurisdictional authorities  for  appropriate  action,  including  investigation.  Investigation  on  complaints  of  tax evasion  is  an  ongoing  process  and  each  complaint  containing  allegations  of  violations  of provisions of the Income-tax Act, 1961 as well as the Black Money (Undisclosed Foreign Income And  Assets)  and  Imposition  of  Tax  Act,  2015    is  examined  and  necessary  action  as  per  the provisions  of  the  applicable  Act  is  taken  by  the  jurisdictional  Income-tax  authorities  depending upon  the  nature  of  allegations,  evidences  supplied,  quantum  of  tax  evasion  alleged  and  other relevant  facts  and  circumstances  of  the  case.  Based  upon  the  outcome  of  investigation  and evidence  gathered  on  the  relevant  issues,  including  the  issues  emanating  from  complaints, determination of income (including undisclosed income, if any) and tax liability is done at the time of assessment of income, following the quasi-judicial process under the applicable Act. Applicable penalties  are  levied  and  prosecutions  instituted  in  appropriate  cases.  Disclosure  of  information regarding specific  taxpayers  is  prohibited  except  as  provided  under  section  138  of  the  Income Tax Act, 1961.
- (c)  Does not arise in view of (b) above.