The Income Tax Department conducts ‘search and survey operations,’ commonly known as raids when they suspect a person or company of keeping unlawful money. Income tax searches have proved to be the most effective method of reducing unlawful riches. Let’s take a look:
Tax raids, also known as search and seizure procedures, are a crucial tool in the Income-tax department’s fight against money laundering. Any of the following situations will result in a raid being triggered:
-Reports from the Income Tax Department’s Intelligence Wing, for example, are a good source of information about tax evasion.
-Departmental data from the government.
-Data gleaned from taxpayer assessment documents.
-When taxpayers’ expenditures exceed their income, this is known as a case of excessive spending without the matching tax revenue to support it.
-The manipulation of financial records, including books of account, vouchers, and invoices.
-Real estate investment done in violation of the law.
-Transactions in cash or shares that don’t make sense for no apparent reason.
– Can enter and examine all buildings and places where he has reasonable grounds for believing unreported revenue is maintained in the form of books of account or other documentation.
-Find a way to get into places where the keys aren’t available and open the locks manually.
– During the hunt, make a list of the valuables they find and take an inventory of them.
– Put identification markers on the books and documents, and make copies or extracts from them.
– Take the items and place them in a safe place.
– Conduct a personal search on a person suspected of concealing some object.
Authorised officials can seize the following sorts of assets:
-Jewellery and cash that hasn’t been declared.
-Records such as ledgers, diaries, and ledger books serve as evidence.
-Devices for storing data, such as computer chips.
-Records pertaining to property, such as mortgages, deeds of trust, etc.
The following assets are exempt from seizure by authorised officials:
-A company’s assets other than its cash.
-Assets or cash that has been declared to the Department of Income Tax or Wealth Tax.
-Assets that have been recorded in the accounting records.
-Amounts of money that are clearly defined.
-Jewellery listed on the tax return for estates and trusts.
-Ensure that only a lady conducts a personal check of women, strictly adhering to standards of decency; have as witnesses at least two respected and independent local citizens;
-If she does not appear in public, a woman who lives in an apartment being searched has the right to leave before the search party enters.
-To make an emergency phone call to a doctor
-When the children have checked their luggage, to enable them to go to school
-To be able to eat regularly
-To check the seals on various receptacles that were sealed throughout the search
-A copy of any statement that the Department of Justice uses against him
-Take a look at or extract information from the confiscated books of account, etc., while any authorised officer or other person empowered by him is present.
A tax raid can be legally avoided by responding to departmental summons and notices promptly and refraining from keeping money or property that isn’t disclosed.
Download Money9 App for the latest updates on Personal Finance.