It seems the government is leaving no stone unturned in its effort to make the tax net more wide in the county. According to a recent TOI report, those who earn more than Rs.5 lakhs from their fixed deposits would come under the radar of income tax authorities. The income tax department is all set to closely monitor their bank accounts and will investigate those who are not paying taxes even after having huge amounts in their fixed deposits.
Even the accounts of senior citizens whose income from interest on fixed deposits is not considered in their taxable income or do not file tax returns at all will also be monitored as per senior officers in the Central Board of Direct Taxes (CBDT).
The tax authorities have started paying more attention to the fixed deposits because there are many professionals who deal in huge amounts of cash and enjoy a lavish lifestyle, but not always file income tax returns.
The Income Tax Department will be relying on banks to give them information related to such accounts. According to the report, they also has a substantial amount of data acquired from different agencies to hunt for those people who are deliberately avoiding the tax net.
The main focus will be on big frauds. “Our primary focus is on the big evaders. Small time cases and persons will be not chased as they do not yield much returns”, as per a senior officer.
Prime Minister Narendra Modi-led government since the very beginning has been very much attention to the need of expansion of the tax net for such frauds. There have been reports which says that the Income Tax authorities are expected to raise approximately Rs.9.8 lakh crores from the direct taxes in the current financial year.