Winning Bizness Desk

Mumbai. The Income Tax Department has once again started scrutinizing the old cases of tax evasion. But this time with a quite different approach. Tax officials across the country are monitoring the INSIGHT portal. This portal searches the huge data of crores of taxpayers in the country to find out the evaders of income tax. Letters are being sent to the taxpayers whose names are appearing in this.

The system works in a random manner

A new rule has come into force in 2021-22. A tax official said, “The system works in a random manner. So it is possible that if theft happens for four years, the system can show for one year. So we know that all are grounds for reopening the year. Also it takes some time to upload all the information before any name appears in it.

The taxpayer is given a week's time

Apart from the green signal from Insight, the IT department will have to follow a detailed procedure. If the name of the taxpayer appears for any assessment year, then under the new section 148A of the IT Act, he/she will have to send a preliminary letter. The taxpayer is given a week's time to respond and if he fails to do so, his case is automatically opened. In Mumbai region, more than 50,000 letters can be sent to taxpayers if the system gives enough names in time.

IT offices will open even on holidays

According to the amended rule, if the total income in case of tax evasion exceeds Rs 50 lakh, then the department can throw out 11-year-old cases. In case of less than Rs 50 lakh, it is four years. The information uploaded on the portal comes from banks, foreign entities, CBI and Enforcement Directorate and other third parties. Experts say that if a satisfactory answer is received from the taxpayer, then it is possible that the case may not be opened. Every taxpayer will get a chance to present his case. It was not like this before.