I-T dept has compiled a list of 8,000-odd non-filers: Report

In a bid to meet stiff revenue targets amid sluggish growth, the income tax (I-T) department has reportedly initiated prosecution proceedings against a large number of individuals and business entities for not filing tax returns and for delaying remittance of tax deducted at source (TDS).
 
This is probably the first time that prosecution proceedings, which was primarily used against wilful tax evaders, have been initiated for such charges.
 
"A list of 8,000-odd non-filers (of tax return) with a past record of earnings has been compiled (by the tax department). Many in that list have been issued prosecution notices," a senior tax official in Mumbai, told The Economic Times.

 

"Notices have also gone to companies which even after deducting TDS (from salaries, rent, or other heads) have failed to submit it to the government," the official said.
 
According to the business daily, some small and mid-sized companies who had cleared the tax in phases along with interest after admitting their inability to pay on time, have also received prosecution notices.
 
The ones who have received such a notice will now have to explain reasons for delay in paying taxes. The assessee might also have to present himself before the magistrate's court if the tax assessing officer is not satisfied with the explanation.

 
The assessee can also move the high court seeking to quash the notice.
 
Tax practitioners and business heads said the move will result in unnecessary hardship to assessees.