Tax evasion: If your earnings are thick but spend zero, yet you are living a luxury life, then there is bad news for you. The Income Tax Department can ask you for the account of everyday expenses, such as which shoes you wear, in which salon do you have a haircut or in which restaurant you go to eat? According to sources, the IT department was asking for domestic expenses. Some taxpayers are receiving notices from the IT department. They have sought information about haircut and restaurant in salons. Ration, electricity and gas bills have also been sought.
According to information received by sources, the IT department has also sought an account of cosmetics and perfume from such people. IT sources say that this details are sought in faceless assessment. Such notices can be sent in the high income group case. IT officials ask for such information under special circumstances. These details are sought on the Missamach of income and expenses in ITR. It is difficult to comment on notice without din, pan, Ay.
Through this exercise, the objective of the IT department is to find out whether these people are hiding their real earnings or are doing big transactions in cash, causing tax evasion. This step of the Income Tax Department is part of the scheme in which data analytics are being used to prevent tax evasion.
Sources in the IT department say that these notices have not been sent to everyone. These include only high -earning people who show huge earnings in their IT returns, but there is a lot of difference between their lifestyle and money withdrawn from the bank. To say in a simple way, if someone is a great luxury life, eats food in expensive restaurants, wears expensive clothes, but withdraws money from the bank, then the department suspects that there is another source of its earnings, which he has hidden.