Income Tax Raid, Search and Seizure – What, When, How
What is Black Money
Black money is funds obtained illegally where other income and taxes have not been paid. Countless money illegally hoarded and hidden from the tax authorities is also called black money. So, it is important that a person does not save money, jewelry or anything that is not mentioned or not announced
When did the attack occur?
Income tax attacks, which are technically known as the Search and Foreclosure process, are one of the important weapons that the Income Tax department must have to check for black money.
Credible tax evasion information; for example, any avoidance that comes out of a report received from the Intelligence Wing from the Income tax department
Information comes from government departments
Information is obtained from taxpayer assessment records
The information received is related to expenditure that is not proportional to the income of the taxpayer, which is an example of wasteful expenditure without income that is suitable to match
Manipulation of account books, vouchers, invoices, etc.
Illegal investment in real estate
Unexplained cash loans, transaction sharing, etc.
Who can conduct raids?
According to Article 132 (1) of the Income Tax Act, which:
- Director General or Director General
- President Director or Director
- President Commissioner or President Commissioner
- President Commissioner or Commissioner
May authorize on
- Additional director or
- Additional Commissioner or
- Joint Director or
- Joint Commissioner or
- Assistant Director or
- Deputy Director or
- Assistant Commissioner or
- Deputy Commissioner or
- Income Tax Officer to carry out tax attacks.
- A taxpayer has failed to comply with a call or notice sent to him by the Department or
- He has his money and second, the money represents either part or part of the income or property that has not been disclosed.
Assets that can be confiscated
The authorized official can confiscate the following types of assets:
- Unannounced cash, jewelry
- Account books, Challen, diaries, etc.
- Computer chips and other data storage devices
- Documents relating to property, transportation equipment deeds, etc.
Assets that cannot be confiscated
Authorized officials cannot use the following types of assets:
- Stock-in-trade (except cash) from a business
- Assets or cash disclosed before Income Tax and the Wealth Tax Department
- Assets are stated in the account book
- Cash that should be explained
- Jewelry is provided in wealth tax returns
- Gold up to 500 grams for every married woman and 250 grams for every unmarried woman and 100mm per male member.
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