I-T dept to check on crorepati candidates

NEW DELHI: With around 68% candidates not furnishing details of their Permanent Account Number (PAN) in the affidavits filed by them in the first phase of elections and many of them being crorepatis, the Income Tax department is likely to take up all such cases for scrutiny to verify if the accumulated wealth had been duly offered for tax.

Fearing disqualification if statements made in the affidavits were to be found untrue when elected, candidates have made astounding declarations with a new record being set every day. So far, the highest declaration made by a candidate has exceeded Rs 600 crore while those between Rs 100 crore and Rs 200 crore are in the dozens.

The I-T department is also hoping to reap benefits from the riches of many of these candidates whose wealth has seen astronomical growth in a matter of a few years. Although the penalty for not having PAN is a meagre Rs 10,000, that for tax evasion could be as stiff as between 100% to 300% of the tax evaded. Sources said even those who had shown legitimate wealth would have to pay wealth tax on the current market value of their property at the rate of 1% of the value of the assets, barring those which are in the exempted category under the Wealth Tax Act. Though wealth tax and income tax are not applicable on political parties, a politician is taxed under both categories and is treated as any other taxpayer in the country, a senior official said. It is believed that the percentage of candidates who have not furnished their PAN details is anywhere between 40-70 % of the total number of candidates who have filed their nominations in the first three phases of elections.

A report prepared by independent election watchdog Association of Democratic Reforms , based on the analysis of affidavits of candidates, revealed that at least 68% of them had not furnished PAN in the first phase. The figure, though, came down slightly but was still as high as 40% by the third phase. Anil Bairwal, spokesperson for ADR, said percentage of contesting crorepatis has increased from 9% in 2004 to 14% in 2009. While 288 crorepatis (18% of the candidates) are contesting in phase two, about 46 out of a total of 196 crorepatis (23%) are contesting in phase three.