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How to Get Reward upto Rs 5 Crore from Income Tax Department ? | taxworry.com

Updated 5 Years Ago

How To Get Reward Upto Rs 5 Crore From Income Tax Department ? | Taxworry.com
So , you know some income tax evaders or some persons having Benami properties or persons having assets and bank accounts outside India and desire that the department should catch them, then there is a good news for you. The department will reward you up to 10% of the tax, that finally comes to government. This post is going to explain the process of filing information with the department and other aspects related to reward scheme that department has formulated. What information can be considered as good for reward purpose? Any information about income, assets that clearly establishes substantial tax evasion under Income Tax Act by the said person is good information for the reward by tax department. If you have information about assets or income of a person outside India, that is, in your view not declared in his/her/its tax return is also a very good information for action under Black Money (Undisclosed Foreign Income and Assets), Act,2015. How the information to be passed to tax department? As per the reward scheme, information has to be given only in a specific form, called Annexure A in writing either in a form of a letter or by email or in person. Copy of the form can be downloaded from here. Where  a foreign  person  wants to give information  of undisclosed  foreign income/assets of a person liable to tax  in India, he may contact the Member (Investigation),  CBDT, North Block, New Delhi-110001  either in person or by post or  by a communication  at email id member.inv@incometax.gov.in  with a copy to  citinv-cbdt@nic.in  for further action Who should be contacted for information? Under the reward scheme, you can approach in person or write to Joint Director (Investigation ) and give him/her the information in the prescribed format. But, you can also approach Principal Director (Investigation) or DGIT(investigation ) who ultimately may refer you to the Joint Director concerned. The information must be passed in annexure A to the said joint director. AS per the scheme, although the information can be passed on by letter or mail, a procedure is fixed that JDIT(Inv) concerned my call you and you will have to appear. It is clear that you can not pass on information for reward purpose unless your identity is tknown to at least to either JDIT(Inv) or Pr(DIT) Inv. What if my information was not accepted by JDIT(Inv) actionable? As per the scheme, JDIT(Inv) will have to take approval of Pr. DIT(Inv) for rejection of any information given by an informant. So, he is not the final authority for rejection of information. Will my identity be secret by the department? If the joint director accepts your information as actionable information, he will allow you an informant code and subsequently all correspondence bear only that code. As per the reward scheme ,identity  of the  informant,  the information  given by him (including all related documents/annexures)  or the reward paid to him shall not be disclosed to any person/authority except when expressly required under any law for the time being in force or by order of any court of law. How much reward can I get? The maximum reward under the Income Tax Informants Reward Scheme,  2018 is fixed as under : For information under Income Tax Act :   5 % of tax finally assessed upto maximum  Rs 50,00,000 For information under Black Money Act 2015    10 % of tax finally assessed  upto maximum  Rs 5,00,00,000 When will I get the reward? Well final reward, you will get only when the government gets to tax and assessment reach finality ( that may take years ! ) Under the reward scheme, In case of Black Money Act, an interim reward of   3% (up to Rs 50,00,000 ) of the additional taxes levied (which is directly attributable to the information furnished by him), has to be paid within 4 months of completion of assessment under section(3) or (4) of Section 10 of the Black Money(UndisclosedForeign Income and Assets) and Imposition of Tax Act, 2015. In case of Income Tax Act, within four months of forwarding of the final investigation report by the investigation Directorate, concerned to the Assessing OfficerAn interim reward up to 1% of the additional taxes realizable, subject to a ceiling of Indian Rupees 10,00,000. Final reward ?? It has been provided that within six months of the assessment becoming final (which means when there is no appeal pending before any court or tribunal.) final reward Where relevant assessments/appeals have attained finality, i.e., against which no appeal! further appeal! revision! rectification etc. is pending or a period of 12 (twelve) months has elapsed from the statutory time limit for filing such appeal/revision/rectification etc., or Where relevant case(s) is/are settled by the ITSC by way of order uls 245D(4) of the Income-tax Act, 1961 and such order has attained finality, i.e., against which no litigation/ rectification etc. is pending and a period of 12 (twelve) months has elapsed from the date of such order of ITSC; or Where the relevant case(s) are under litigation on certain issues but the informant requests for grant of final reward based upon the undisputed additional taxes realized directly attributable to the information furnished by him, till the date of his request and gives an unconditionally written undertaking signed in the presence of the JDIT (Inv.) concerned. How will the award be paid? The reward is generally paid in cash to Indian informant through treasury ........but it has been clearly provided in the Income Tax Informants Reward Scheme, 2018 that a foreign informant who gets the reward for information under Black Money Act may be paid through banking channel.
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