Income tax dept sues 570 tax evaders; gets mercy applications from another 1,200

This year, the number of legal prosecutions initiated by the income tax department is 570, three times higher than last year's 196. While the department has started a drive against tax offenders, 1200 others have appealed for mercy under compounding of offences rules; most of them, after demonetisation.

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If convicted, they could face imprisonment of up to seven years in addition to fine, along with interest and penalty on the amount of tax evaded.

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The department asked its officials to file prosecution complaints against entities who refuse to own up their money even after submitting evidences based on cash deposits in their bank accounts after demonetisation.

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As more data collected from banks gets analysed, more cases could be filed.

Several offenders, in a bid to avoid penalty, have also opted to surrender their unaccounted income under the Pradhan Mantri Garib Kalyan Yojna, which can only be done till March 31st.

(Image source: CFO India)