FAILED TO MENTION THE PAN NUMBERS IN THE TRANSACTION OR TRYING TO EVADE TAX – THE GOVERNMENT HAS PROPOSED TO SEND 7 LAKH NOTICES
The Finance Ministry is sending out 7 lakh notices on big transactions which appear suspicious because PAN numbers were not disclosed.
The Department will be issuing letters to the parties of these transactions requesting them to provide their PAN number against these transactions. The Department has initiated a New Functionality in the E-Filing Portal for the convenience of the parties to whom these letters/notices are addressed, wherein they can own up transactions and provide structured response electronically. The parties can log-in to their e-filing website and by quoting a Unique Transaction Sequence Number provided in the letter sent to them, can link their transaction.
The deals under scrutiny have been culled from 2009 to 2016.
Those who’re being asked to furnish more information are people who deposited Rs 10 lakh or more in cash in savings accounts; those who bought or sold property worth Rs 30 lakh or more.
For those who receive the demand for an explanation, a government statement elaborated, “The parties can log-in to their e-filing website and by quoting a Unique Transaction Sequence Number provided in the letter sent to them, can link their transaction with their PAN easily. They will also be able to give a response to this letter electronically by choosing the option of either owning up the transaction or denying the transaction as their own.”
The decision to issue tax notices was announced a day after the Cabinet cleared the Benami Transactions Bill, which provides for confiscation of assets held in the name of another person or under a fictitious name to avoid taxation.
The rate of 1% may increase to 20% if seller does not provide PAN due to overriding provision of section 206AA of ITA.