| The Central Board of Direct Taxes (CBDT) has revised the norms for income-tax scrutiny for corporates as well as individual assesses to step up collections.
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| Under the new corporate guidelines, banks, public sector undertakings, NSE-500 and BSE A group companies, non-banking finance companies and investment companies with paid-up capital of more than Rs 10 crore have been identified for scrutiny assessment. Any assesses under search and survey of the income-tax department will also be included.
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| According to official sources, the new guidelines are income-based unlike the earlier practice of selecting cases for scrutiny randomly from government databases.
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| Scrutiny assessment involves a more detailed examination of the returns filed so as to check the claims, while normal assessment is cleared on the face value of assessments.
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| Companies with book profit above Rs 50 lakh will be among the scrutiny assesses whereas criteria for foreign firms include local subsidiaries of multinational firms with international transaction volume over Rs 5 crore.
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| Corporate stock brokers with gross brokerage income of over Rs 1 crore and individual brokers of gross income of 50 lakh. Similarly, it also includes corporate brokerages with claiming bad debt of Rs 10 lakh or more and individuals for Rs 5 lakh or more. Amalgamated companies claiming set-off losses and all cases of contractors with contract receipts exceeding Rs 5 crore will come under scrutiny.
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| As far as exports are concerned, corporate houses with export turnover exceeding Rs 10 crore and individual exporter with turnover of Rs 5 crore and claiming deduction will be included under the fold.
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| Income and claim-based criteria in metros include deduction claimed above Rs 25 lakh by corporate and Rs 10 lakh by individuals, refund asked over Rs 10 lakh by individual and Rs 50 lakh by corporates and exemption from taxes claimed above Rs 10 lakh by corporate and Rs 2 lakh by individuals.
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| Over and above these cases, any such cases where the department has specific information about tax evasion in the form of dividend /bonus stripping, will also be included.
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| Tax officials said for last few years, collection from scrutiny assessment has been moderate as database of companies from which cases were selected failed to include more potential cases.
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| This was because the earlier database included companies, which were either under liquidation or referred to the debt recovery tribunal or under the settlement commission. |
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