Tightening the noose around tax evaders, the Income Tax Department will launch a special drive from January 20 to verify high value transactions, under which tax officials may visit the premises of assessees and enquire about their sources of income.
"The CBDT has directed the I-T Department to launch a special drive, from January 20 to March 20, for verifying high value transactions (investments/deposits/ expenditure) from persons who are not assessed to income tax or who have not furnished their PAN while entering into such transactions," said a Finance Ministry release.
The high value transactions that will be under the I-T Department scanner include the purchase of property, vehicles, shares and bonds, fixed deposits in banks and post offices, etc.
The assessees, the release said, "will be required to explain the source of high value investments/deposits/ expenditure and whether these are properly accounted for/explained in the income tax returns filed by them."
In some cases, it added, "The tax officials may also visit the premises of the high value investors/depositors/ spenders."
The two-month-long drive is expected to raise tax collections and help the government bridge the fiscal deficit, which is expected to exceed the Budget target of 4.6 per cent of the Gross Domestic Product (GDP).
According to the release, those receiving notices under the special drive will be required to furnish their Permanent Account Number (PAN). Those who do not have PAN would be required to immediately apply for the number to NSDL or UTISL, it added.