Income Tax Raid

Income tax raids intensify! Continuing at Congress MP Dheeraj Sahu's premises in Odisha, Jharkhand, with additional cash seizures. Stay compliant, respond to notices, and avoid legal repercussions.

Income Tax Department conducts raids to curb black money hoarding, a pivotal move in the Indian Government's anti-corruption initiatives. What is Black Money? Black money, earned illegally without tax payment, is unaccounted wealth. Possessing undeclared assets may lead to income tax raids, requiring caution and accountability. When does a raid happen? An Income Tax raid, or Search and Seizure, is a potent tool against black money. Constitutionally valid, it's triggered by credible tax evasion information, government sources, disproportionate spending, or financial irregularities.

Who can conduct a raid? As per Section 132(1) of the Income Tax Act, authorized officers, from Principal Director to Income-tax Officer, can conduct a raid. Initiated with a 'reason to believe,' it's triggered by non-compliance or undisclosed money. Courts, not the taxpayer, have the right to access search information for investigation. Powers of tax authorities during a raid The authorized officer, during a raid, can enter and search premises with suspicion of undisclosed income. They can break locks, personally search individuals, seize valuables, mark and document findings, ensuring a thorough investigation process.

Assets that can be seized Authorized officials can seize undeclared cash, jewellery, books of accounts, computer chips, and documents related to property during raids. Assets that cannot be seized Authorized officials cannot seize disclosed stock-in-trade, assets declared to tax authorities, or cash duly explained. Exclusions include jewellery listed in wealth tax return, and limited gold holdings per person: 500 gm for married women, 250 gm for unmarried women, and 100 gm for men. Rights of a person during a tax raid During a search, individuals have rights, including a personal search by a lady, witnesses during the search,

withdrawal rights for a lady in a residence, medical assistance, and access to documents. Rights of a person after a tax raid The person whose documents are seized can make copies or extracts in the presence of authorized officers. An aggrieved person can challenge the raid through a High Court writ petition. Duties of a person during a raid During a search, the person must allow unhindered access, identify assets, explain ownership, and provide truthful information. Cooperation is required throughout and after the search for follow-up investigations.

Procedure for assessees who have been raided wrongly If an assessee deems a raid unjust, they can file a writ petition with the High Court or appeal before the Commissioner of Income Tax (Appeals) to challenge the raid or assessment. How can one prevent raid? Avoid tax raids: Respond to notices, declare assets, and stay compliant. What we do? FinXpres provides a fully integrated Accountancy, Taxation and Business Support service to sole traders, partnerships and limited companies. We can be reached at Call: 011-35052846 Whatsup: 99533 40695 email: manage@finxres.com