Income Tax dept says media wrong to report that it is arresting wilful tax defaulters

It was reported yesterday that IT department will block PAN, cancel LPG subsidy and ensure loans are not sanctioned to the wilful tax defaulters

The Income Tax Department has issued a statement in which it has said that certain media organisations have erroneously reported that the department is going to arrest wilful tax defaulters.

In its statement, the I T department said, "Certain sections of the press have been carrying news reports today that Income Tax Department is going to arrest wilful defaulters of tax. In this regard, it is clarified that no such statement has been authorised by the Income-tax Department."

The statement further said, "Though the provisions for arrest and detention by the Tax Recovery Officers in respect of the non-compliant tax defaulters are contained in the Income-tax Act, these are used extremely sparingly.

Press Trust of India had yesterday reported that Income Tax department has decided to "block" Permanent Account Number (PAN) of wilful tax defaulters, get their LPG subsidy cancelled and take measures to ensure that they are not sanctioned loans.