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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:

When is a raid likely to take place?

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.

Search officer can…

– 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.

What falls under assets that can be seized?

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.

Non-recoverable assets

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.

Person’s rights in the course of a tax raid

-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.

What can be done to stop a raid?

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.