The Hindu Business Line : Annual info reports helping to track high value transactions: CBDT chief

THE Annual Information Reports (AIRs) filed by assessees are turning out to be an invaluable source of information for tracking down high value transactions that have so far fallen outside the tax net, Mr M. S. Darda, Chairman, Central Board of Direct Taxes (CBDT), said here on Friday.

Direct taxes are becoming increasingly important from the revenue collections' point of view for the Government (from Rs 26,971 crore in 94-95 to Rs 68,395 crore in 2001), he pointed out. Participating in an interactive session organised by The Bengal Chamber of Commerce and Industry, he said the Banking Cash Transaction Tax (BCTT) too has proved to be an effective tool to unearth the source of large money transactions, which need to be brought under the tax net.

He clarified that there was a move to synchronise BCTT with the data revealed by the AIR, especially by the banking institutions. Thanks to AIRs, we can now have at least an idea of how much of unaccounted money is actually there in the market and how to reach it, he said.

He confirmed that the AIRs being filed by taxpayers were now emerging as effective instruments in the hands of the department to track down high value financial transactions.

AIR data now covers eight common heads of investments (with different threshold limits), some of which are deposits, large purchases through credit cards, property purchases, and investments in shares, debentures and RBI bonds.

About 90 per cent of AIRs received were without PAN numbers or incorrect PANs or defective addresses, on which we provide additional time to the assessees, and after which we start the investigations, he clarified.

The CBDT Chief conceded that the Government has not been able to track down the tax evaders to the desired level, and that the menace is definitely on the upswing.