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Earning Interest Of Rs 5 Lakh Or More On FDs? You May Come Under IT Scanner!

न्यूज़ वर्ल्ड इंडिया | 0
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| August 28 , 2017 , 08:21 IST

The income tax department has turned its attention to individuals who are receiving high-interest income from fixed deposits but are not paying taxes proportionate to their additional income.

Specifically, the focus of the income tax department is on those earning interest income of Rs 5 lakh or more, which would include senior citizens as well. Senior officers in the Central Board of Direct Taxes (CBDT) revealed to TOI that many do not include the interest on FD in their taxable income or simply do not pay tax or file returns.

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A senior tax official said that the department would rely on the data it has amassed from various agencies to zero in on taxpayers whose interest income from large fixed deposits was not being represented in their tax payments.

The move comes as part of an attempt by the government to widen the tax base, accordingly, professionals will also be coming under the I-T scanner, many of who earn a significant amount of money through cash but do not disclose the exact income and continue to maintain their lavish lifestyle.

Professionals earning in cash are more difficult to catch as they allude to circumstantial factors to defend any unusual cash holdings. For example, doctors being raided during this time of year have claimed that the higher amount of cash holdings is due to patients suffering from dengue or chikungunya infections which are peak during this weather.

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In comparison, extra income in the form of interest earned on FDs is easier to detect and identify. While in many cases the tax of 10 percent is paid, persons falling into the 30 percent bracket often do not pay taxes.

"Our focus is on the large evaders. There is no point chasing the smaller persons who do not yield much returns," explained a top-ranking officer.

The tax department has a target of raising Rs 9.8 lakh crore from direct taxes in the current fiscal year.  

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