Non-recovery of refunds: IT dept may begin probe

The Income Tax department may start an inquiry into alleged discrepancies in filing of tax returns of some of Madhya Pradesh ministers pointed out by an audit report.
The Income Tax department has got some documents pertaining to the alleged lapses and is in the process of acquiring others, officials sources said.
A report by Accountant General, which acts as distant arm of the Comptroller and Auditor General (CAG), has asked the government to clarify about the alleged discrepancies in payment of income tax by ministers despite the fact that they get similar pay and allowances.
It has also sought information about the refund of excess amount paid as income tax on behalf of ministers by the government.

According to rules, the amount refunded on basis of revised Income Tax returns of ministers has to be deposited in the government exchequer.
A demand in this regard to deposit about Rs 3.24 lakh had been raised against two ministers - Ramkrishna Kusmariya and Ajay Vishnoi, the report has said. The ministers had later paid the amount.

According to rules, the state government pays income tax on the salary and allowances of ministers. The income tax on earnings from other sources has to be paid by the ministers themselves.
The report, which was based on an inspection carried out between February 5 and 14 this year for the period April 2011 and December 2012, was accessed by activist Ajay Dubey exercising his Right to Information (RTI).

"It is a serious issue. The IT department must look into it," said Dubey, who has also lodged a complaint with the tax department.