India tightens up on tax evasion

India tightens up on tax evasion
21 May 2018

India's income tax department has tightened up on tax evasion, initiating nearly 7,700 prosecutions during 2017-18, more than three times as many as the previous year. 

The number of cases filed in court also quadrupled to more than 4,500. Seventy-five tax evaders were convicted during the last financial year, compared to 16 the previous year. In the past, the government had been considered too lenient.

A senior tax officer told the Times of India: "If you want voluntary compliance in 99% of the cases, then you have to target those who are not following the law. In other countries, you cannot get away after committing serious tax offences."

Sources added that, there were several instances in which tax should have been deducted at source but was not. "This is a serious offence and we are taking it very seriously," another officer said.

As a result, the government is now focusing on those cases where there has been a “wilful attempt” to evade taxes or penalties, including making late returns and false statements.

 Emma Woollacott

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

 

India's income tax department has tightened up on tax evasion, initiating nearly 7,700 prosecutions during 2017-18, more than three times as many as the previous year. 

The number of cases filed in court also quadrupled to more than 4,500. Seventy-five tax evaders were convicted during the last financial year, compared to 16 the previous year. In the past, the government had been considered too lenient.

A senior tax officer told the Times of India: "If you want voluntary compliance in 99% of the cases, then you have to target those who are not following the law. In other countries, you cannot get away after committing serious tax offences."

Sources added that, there were several instances in which tax should have been deducted at source but was not. "This is a serious offence and we are taking it very seriously," another officer said.

As a result, the government is now focusing on those cases where there has been a “wilful attempt” to evade taxes or penalties, including making late returns and false statements.

 Emma Woollacott

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

 

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