Within 10 days of tapping Rs 2,500 crore in disclosures of unaccounted income in the state, the Surat wing of the Income Tax department has started sending notices to those who have bought luxury goods, like watches, four-wheelers, jewellery, paintings or artefacts. According to sources, the IT department has started issuing notices to those who had purchased luxury cars costing more than Rs 25 lakh, and high-value watches and paintings. These notices were also sent to those who purchased luxury items with credit cards or provided PAN numbers to the sellers while buying it.
The I-T department has sought explanations from the parties to show their source of income and whether luxury items they had bought were shown in the book of accounts of the firm or not. They have also been asked to furnish the supporting documents withing 30 days from the date of receipt of the notices.
Mayank Desai, chartered accountant, Surat, said, “Many of my clients have received such notices from the I-T department, seeking an explanation for such purchases. If the purchases have been done online, the data directly go to the central processing unit of the Central Board of Direct Taxes.” He added, “Based on this data, the income tax officials issue notices in their respective cities.”
Desai added that many corporate houses used to buy Diwali gifts, which is one of the reasons for issuing notices by the tax department. He further added, “In this case, the chartered account has to give a proper explanation in writing to the IT department. If the IT officials are not satisfied with the furnished explanations, they will demand more explanations. If a person or firm does not respond on time to their notice, he has to pay a penalty of Rs 10,000 to the I-T department upon which they would get a chance to explain the source of income.”
For all the latest India News, download Indian Express App now