The Income Tax Department has refuted claims that taxmen are “harassing” industry by resorting to “increased and indiscriminate raids.”
It has instead pointed out that the number of surveys at business premises (which do not involve entering into residences) had reduced in the last three financial years, although the income detected and admitted by the persons surveyed have been on the rise.
The large amounts of undeclared income admitted by the persons searched/surveyed justify the action taken by the department, an official release said.
In the last two years, income amounting to Rs 18,750 crore was detected and admitted by the persons in searches. In the current year, the income admitted is Rs 3,887 crore, the release added.
Surveys conducted
The number of surveys conducted were 5,777 in 2008-09; 4,680 in 2009-10 and 3,911 in 2010-11; and the income detected and admitted by the persons surveyed was Rs 3,060 crore, Rs 4,857 crore, Rs 5,894 crore, respectively.
In the current financial year 2011-12, only 1,271 surveys have been conducted up to September, 2011.
“Out of 350 lakh taxpayers, searches and surveys were conducted in about 7,000 cases, which is 1 in 5,000 taxpayers. Therefore, the impression sought to be created, that raids are being conducted by the tax department indiscriminately and have been increasing in the recent months, has no factual basis whatsoever,” the statement said.
The Centre's efforts to clear the air on taxman's perceived penchant for raids, especially on industrialists, comes close on the heels of the Prime Minister, Dr Manmohan Singh, expressing some disappointment over negative comments emanating from business leadership.
Govt to blame
The industry has sought to point a finger at the Government for the current distressed condition and the latter's inability to push through ‘new generation reforms' like retail and pension.
The Government's flip-flop on crucial economic polices and ineffective handling of the inflation situation has led to sharp increase in interest rates, thereby slowing down the industrial sector, some industrialists had rued.
In August this year, the UPA Government had reached out to Corporate India to bridge trust deficit and clear the air over seeming lack of policy initiatives, in an environment of cynicism when several scam cases were before various courts.