NEW DELHI: If you have paid Rs 50,000 in cash to purchase an item this Diwali, be ready with cash receipts and records, else you may have to give lengthy explanations to the income tax department. In a crackdown against tax evasion and to discourage cash transactions, the income tax department is keeping a close record of any high-value purchase over Rs 50,000 in cash, including gold among other luxury items.
“We are keeping close scrutiny of people who are using cash for high-value purchases like gold, silver and other precious items. There is no problem if the buyer is using digital payment modes to make the purchase. But if a cash transaction is used it is advisable to keep the receipt, “ a senior IT official said.
The official added that the purpose of this scrutiny is to track black money and tax evasion and not to harass the honest taxpayers.
“There is no need for honest taxpayers to fear anything. The crackdown is on tax evaders and also sellers who do not give receipts and invoices. There will be no trouble if you insist on an invoice,” the official explained. The official added that in the last 12-20 days, in Delhi circle alone, they have cracked down on over 50 commercial establishments and have reported over Rs 10 crore in tax evasion, by using inflated bills and wrong invoices among other means.
In total, 25 teams of the department were deployed for the raids and each team was led by an assistant commissioner, to check on dealers who were defrauding the government of its legitimate taxes. In future, the government is going to intensify this kind of scrutiny.
“In future whenever you are making any high-value purchase, insist on getting receipts against them. Sometimes shopkeepers offer some extra discount for not giving a receipt, it can land you in trouble. The best way is to purchase using digital mode. It helps us in avoiding tax evasion and also it helps in keeping tax records straight,” the official further added.
IT crackdown on tax evasion in the NCR
Over the last few weeks, in Delhi circle alone, officials have cracked down on over 50 establishments and have reported over Rs 10 crore in tax evasion, by using inflated bills and wrong invoices.