The Hindu Business Line : I-T dept analysing high-value transactions uncovered in Bengal

THE Bengal Zone of the Income-Tax Department, with the help of AIR (Annual Information Report)-backed third party information, has uncovered data on large number of high value transactions.

These pertain to cash deposits (of Rs 10 lakh and above), credit card transactions of Rs 2 lakh and above, mutual funds receipts of Rs 2 lakh and above, bonds of Rs 5 lakh and above, share transactions of Rs 1 lakh and above, property deals of Rs 30 lakh and above and RBI bonds of Rs 5 lakh and above.

Speaking at the 24th annual national meet of the Accountants' Library, said to be the oldest in the country, Mr P.C. Sinha, Chief Commissioner of Income Tax, Kolkata-I, said the entire information on the above money transactions was being analysed by the department, and query letters will be sent out soon.

He urged tax practitioners, dealing with different types of assesses, to help the department by advising their respective clients to revise their current returns wherever an inadequacy is found.

`If these clients of yours have entered into any transactions this fiscal, please advise them to pay the advance tax,' he said. Expressing concern over the sharp fall in personal income-tax collections in the zone till November 2005, Mr Sinha urged the auditors and accountants dealing with smaller assessees to publicise the efficacy of the AIR system and help the department make up for the shortfall in personal income-tax collections.

The Bengal Zone's targeted budget collections for the current fiscal is Rs 7,600 crore against a national target of Rs 1,76,000 crore.

Mr Sinha said "if the audit reports filed with the department are correct in every aspect, there is absolutely no need for us to look any further, and the department should not have any further queries for the assessees".

Mr Justice Umesh C. Banerjee, former Chief Justice of the Andhra Pradesh High Court and former Judge of the Supreme Court of India, and Chairman of the Godhra Commission of Enquiry, said accounting scams take place despite the reports of audit committees and this was a worrying factor. Pointing out that accountants should never compromise on professional honesty, he said the ethical dimension was of great relevance in this particular profession.

Earlier, inaugurating the annual meet, Mr Nishith Adhikary, the State Law Minister, said in an era of globalisation and technological revolution, where change is a constant factor, there is a need to make new laws to face the emerging challenges. He said the accountants had a pivotal role in this changing scenario of taxation, audit and accounts.