How to know, if you are under Income Tax Scrutiny

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Being.smart

Being.smart

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Is there any way , from which we can know, whether someone's name is under Income Tax Scrutiny ???

or Is there any way to know, whether someone had filed a complain against someone for paying low taxes ??
 
If you have lots of money and you know you might be not paying your taxes properly, assume you are under scrutiny.
 
raksrules said:
If you have lots of money and you know you might be not paying your taxes properly, assume you are under scrutiny.
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if someone comes to your home from IT department inquiring about PAN card financial details and past ventures, is it possible that you are under scrutiny, or just they are making a list of shop owners ?
 
Ideally, IT dept sends a Notice (letter) to those who are considered under scrutiny....

@OP, do check your post.... ;)
 
6pack said:
There are hundreds of politicians who have crores stashed in some unknown place. Why would the IT come after a shopkeeper?
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Possible because they cannot extract the money out of those corrupt and useless politicians so they target the people where they can actually get something ?
 
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6pack said:
There are hundreds of politicians who have crores stashed in some unknown place. Why would the IT come after a shopkeeper?
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And how do you think the politicians would explain the IT department where they got all that money from? It makes sense to go after individual businessmen who have known assets. Politicians funnel only a part of the black money through laundering and they pay taxes on that, the other they keep hidden somewhere else, sometimes domestic or mostly international.
 
Being.smart said:
if someone comes to your home from IT department inquiring about PAN card financial details and past ventures, is it possible that you are under scrutiny, or just they are making a list of shop owners ?
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If someone comes to my home enquiring about my financial details, the first thing I will suspect is some kind of scam.
IT dept. sends you a notice first and asks you to report to the auditing officer in his/her office only on a specified day. Some years ago, I was audited by the IT department (no particular reason. It was a random sample audit.)
If there is a surprise raid, then you have a bunch of officers with authorization letter from either IT commissioner/Vigilance officer along with their ID cards. If there was a single person enquiring about your financial profile, I would suggest you to be aware and be very cautious about disclosing any financial details.
 
manoja2k said:
If someone comes to my home enquiring about my financial details, the first thing I will suspect is some kind of scam.
IT dept. sends you a notice first and asks you to report to the auditing officer in his/her office only on a specified day. Some years ago, I was audited by the IT department (no particular reason. It was a random sample audit.)
If there is a surprise raid, then you have a bunch of officers with authorization letter from either IT commissioner/Vigilance officer along with their ID cards. If there was a single person enquiring about your financial profile, I would suggest you to be aware and be very cautious about disclosing any financial details.
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Quite possible (considering OP has 2 showrooms,etc)
Special 26
lolz
 
manoja2k said:
If someone comes to my home enquiring about my financial details, the first thing I will suspect is some kind of scam.
IT dept. sends you a notice first and asks you to report to the auditing officer in his/her office only on a specified day. Some years ago, I was audited by the IT department (no particular reason. It was a random sample audit.)
If there is a surprise raid, then you have a bunch of officers with authorization letter from either IT commissioner/Vigilance officer along with their ID cards. If there was a single person enquiring about your financial profile, I would suggest you to be aware and be very cautious about disclosing any financial details.
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I didn't told her much, and yeah i asked for her id card too :D. Just cross checked my Form 26 for last 5 financial year, and none of them shows are special AIR transactions, quiet relieved :D :D

@imkaush, brotha that used to be old time, recently i had shutdown one venture, and now going along with a single one :)
 
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Scrutiny is basically a love letter from department stating to bring your books of particular year fr which letter came and why you asked deduction or give reason of source of money.

Yesterdays paper article

http://articles.economictimes.india...e-tax-department-tax-filing-portal-tax-notice

Scrutiny parameters differs every year.

AIR parameter violation also can lead to scrutiny .Also every year some random parameter are also chosen for same .Like having more than 50k as cash in hand in IT returns.Also in Mumbai 2-3 years back people showing drawings(personal sundry expense)in balance sheet below 50k was also a parameter for random scrutiny and persons were call to explain how you can live in this expensive city at less than 5000 monthly expense.Also few years back people buying LCD worth more than 50k .Government gets the address from showrooms as people easily give fake names but for delivery correct address.And do check the return via address whether tv expense disclosed or person buying 50k tv and showing nil tax liability.Also interior designers doing big work worth rupee more than 2 lakh also used to forward detail to the department or they need to sit for their scrutiny .


If your track is clear and you maintain all books properly scrutiny can be easily taken care off.

Also these days department is after big fish where they can get crores as penalty plus undisclosed income.Rather than wasting time on chillar peoples (where only few lakhs and thousand comes up and that too only once if 5 year period)and wasting their day.But yes it doesn't mean you are safe.

Except Politicians and BigJudges-Lawyers no one is safe.
 
Hurrey!!!!!!!!!!!!!

Just contacted my neighbor, that girl has also asked same questioned to him, before coming to my store. :X :X

He confirmed that IT department is making list of shop owners locally in order to cross-check their IT returns :dead::dead::dead::dead:

Also one question, if we use Bank accounts for transaction, which does have PAN attached, can it save us from IT problems :D :D
 
^^
Which world are you in. PAN does not save you from IT graft. PAN is used to track transactions; ie create a traceable trail for the source and destination for various modes of cash transfer. As long as you are clean in your books, paying the correct tax, not misusing exemptions, filing on time you should be clean. It is quite simple.
 
Being.smart said:
^^ who does all that in real world :D :D
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agree, that 90% of the shopkeepers don't do this. that's why they get jitters when the mode of payment is anything but cash!

govt employees and average joe pay their taxes diligently and they fall under the "oppressed class"... LOL
 
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