IT Department Set To Act upon Tax Evaders

The Finance Ministry has taken its campaign against the tax evaders to the next level. It has asked the Income Tax department to take strict prosecution decisions in cases of tax evasion where tangible assets have been stashed in foreign countries. Earlier, before the department could initiate any legal action, it had to seek permission from the higher authorities. Now, however, there will be no need to do the same.
The concerned range of IT may be asked by The Foreign Taxation Division of the Finance Ministry to ensure that summons is issued to such a depositor. This summons will be on the basis of the proof that will be provided by the concerned country’s financial enforcement wing. According to a senior IT official, “the CBDT has issued orders in this regard as this will help in initiating quick action in cases where foreign accounts or assets have been traced by investigators”.
The objective is also to minimize the interaction between prosecuted party and the investigator. Sources say that this step will certainly also prove helpful in making the international finance enforcement community realize India’s serious stand against the issue of illegal funds as well as black money.