Threefold jump in prosecution against tax offenders

NEW DELHI: Turning up the heat against tax offenders, the income tax department tax launched criminal prosecution in 570 cases till January in the current financial year, about a threefold jump from 196 in the previous fiscal.

This was is in addition to payment of tax, interest and penalty. A successful prosecution one can lead to a maximum seven years of imprisonment. Most prosecution cases deal with offenders not filing returns despite having income, not depositing tax deducted with the department or wilful attempt to evade taxes.

Investigations in undisclosed income cases connected to HSBC, ICIJ and Panama also led to filing of prosecution complaints. The department received 1,195 applications for compounding of offences.

The department expects to initiate prosecution in more cases as investigations into manipulations during demonetisation have led to detection of a number of cases, it has said.

A number of persons have already opted for Pradhan Mantri Gareeb Kalyan Yojana to declare their unaccounted income, but those who have not come forward risk facing prosecution.

The Central Board of Direct Taxes has already directed its field officials to expedite filing of prosecution against shell companies that have facilitated money laundering.