I-T department to track high value transactions

View quick summary Due to the slowdown in economic growth, corporate earnings have decreased. This has impacted the tax collection; the April-December period saw a net growth in direct tax earnings by a miniscule 8%. So, to step up tax earnings, the I-T department has decided to track high value transactions, with a focus on those above Rs 10 lakhs.
The Department can ask the party to explain the source of money, verify the accounting recorded for the transaction in the ITR and furnish PAN card details. Transactions between persons who are not income tax assessees or those who didn’t reveal their PAN while entering the transaction will be brought under the scanner.
M.C. Joshi, Chairman, Central Board of Direct Taxes clarified that the focus of the drive will be on bigger assessees and on companies doing financially well. This drive will only take recorded transactions into account. Measures that must be taken to target unaccounted transactions still remains an open question.
Defaulters may have to cough up almost 300% of the unpaid tax levy and if the case demands, prosecution. Experts believe that the drive can bring to light the trail of how illegal funds enter the system.